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Twitter Co-Founders Lost Over $750 Million As Company Stock Fell over 18% : Bloomberg

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It just hasn’t been Twitter’s day. While the micro blogging site failed to meet the macro expectations of its investors when it posted first quarter revenue reports this afternoon, its founders alone lost a staggering $750 Million in paper wealth as per the Bloomberg Billionaire Index.

Twitter had a disastrous earnings report today. The report, which got leaked before its scheduled arrival, fell way short of expectations, resulting into crashing of Twitter’s stocks by 18%. Both the cofounders, Evan Williams and Jack Dorsey lost almost $750 million

The company in its official statement, cut down the sales forecast in second quarter, estimating it about $470 million to $485 million, missing the average projection of $538 million by analysts. It also cut full year revenue guidance to $2.17-$2.27 billion from the previous range of $2.30 billion to $2.35 billion.

Investors who have been criticizing the slow user growth for past one year have become more agitated with recent developments. However, speaking for an interview with Bloomberg TV, William remained optimistic and said,

No one likes to see a stock fell like that. But, honestly, I have the utmost faith in the long-term business of Twitter and it’s easy to get caught up in the ups and downs of the stock market.

Even though Twitter registered a 18% Y0Y and 80% QoQ growth in its user-base, Investors have never really been impressed by Twitter’s unremarkable figures. Investors believe, that if Twitter’s engaging power to draw in new visitors isn’t high enough, you can’t have much revenue coming from the company. That, is a pretty valid point.

As for numbers released yesterday, Twitter’s revenue stood at $436 million, an increase of 74 percent on a year-over-year basis. However, that number missed the company’s own guidance, as well as wall street’s $456.8 million by a decent margin. Twitter earned $0.07 using adjusted metrics, and lost $0.25 using normal accounting methods (GAAP). The street had expected an adjusted profit of $0.04.

The company’s GAAP net profit fell during the period, compared to the year-ago quarter, expanding from negative $132.3 million, to negative $162.4 million.

While growth in revenue may have been the upside of Twitter’s earnings call, the real upside was probably its recently shopped, Periscope. The video-streaming app saw over a million users registering for the service, in a mere 10 days. Saved the day !

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