Despite the fact that Twitter announced better than expected earnings for the first quarter of 2014, the company has seen its share price slide on Wall Street as concerns grow over a lack of user growth. The social platform saw its sales double to $250.5m on the same quarter last year, beating projections of around $241.5m, but the financial performance seems to be masking potential issues regarding user engagement and growth.
Twitter claims to have had around 255 million active users each month for the first quarter, which represents an increase of just 5.8% over the same time frame for the previous year - figures that aren't seen as particularly encouraging for potential investors.
The announcement of the company's figures resulted in a shocking 10% slide in share price during late trading, which was powered by the fact that user growth isn't seen as sufficient to guaranteed the future success of the company, unlike Facebook which is still seeing continual growth despite most of the internet-enabled users on the planet having an account.
The drop in share value isn't a massive disaster for the company, but if it doesn't do something to spark user growth then it could be looking at a potentially troublesome future.