NEW YORK (TheStreet) -- Twitter ( TWTR) isn't on track to hit the billion user tipping point. That was the verdict on StockTwits.com after the micro-blogging social network's first-quarter earnings announcement Tuesday evening.
User growth, however, disappointed. The number of monthly active users increased 25% year-over-year. Last quarter, that number increased 30% compared to the fourth quarter of 2012.
Sequentially, the number of monthly active users grew 5.8% to 255 million. That growth is relatively anemic compared to, say, WhatsApp, the messenger service Facebook ( FB) acquired for $19 billion earlier this year. WhatsApp has 450 million users and is adding them at the rate of one million per day.
$TWTR after last ER TWTR collapsed 25% in one day. And their user slowdown wasn't THAT bad like this ER. Hmm...? Alex Cusack (@accounts) Apr. 30 at 08:41 AM
As of the open, Twitter had a $24 billion market cap. It trades at nearly 194 time expected 2015 earnings. On Wednesday, many investors doubted Twitter would enjoy such high multiples for long. About 49% of users anticipated further declines, according to StockTwits' analytics. The stock has already declined nearly 50% from its 52-week high.
$TWTR The results from the ER aren't really surprising. Growth is anemic and the monetization strategy they have in place is unworkable.