NEW YORK (TheStreet) -- Twitter (TWTR) shares swooned after the company's earnings report after the bell Tuesday failed to impress investors. The stock traded as much as 5% lower in after-hours trading, reaching its lowest levels since the social media company went public in November 2013.
Twitter isn't alone; other social media stocks Google (GOOG) and LinkedIn (LNKD) have lost ground in 2014. Facebook (FB) is marginally higher since the start of the year, but it's down 20% from last month's high.
Although Twitter beat the official average estimates of Wall Street analysts, investors were disappointed by another gauge of its growth: average monthly active users, or MAUs.
The number of MAUs did grow more than 5% from the previous quarter, to reach 255 million, and were up 25% from the same period last year. But Twitter's nose-bleed earnings price-to-earnings ratio of more than 190 demands a greater growth trajectory or it will turn into just another tech stock with a P/E closer to 20.