(Bloomberg) — Twitter Inc. shares tumbled 18% Friday after the company reported far fewer new users in the quarter than analysts had estimated, dashing optimism that the social network would benefit from a return of live sports and the coming U.S. election.
The company reported 187 million daily users at the end of the quarter, an increase of 29% from last year, but a paltry gain over the previous period. By comparison, Twitter added 20 million new users in the second quarter.
Advertisers, however, flocked back to the San Francisco-based company in the third quarter, driving sales well above analysts’ estimates, in a sign the digital advertising business is returning following the outbreak of the global pandemic.
Twitter is one of three internet