Twitter Stock Falls on Earnings. Here’s What Wall Street Didn’t Like.

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Twitter

inventory is taking successful as Wall Street digests the corporate’s first-quarter earnings report. Analysts say the market was disenchanted by the corporate’s second-quarter outlook and indicators of weak spot in consumer development.

Twitter inventory (ticker: TWTR) was down about 13% to $56.72 late Friday morning. The

S&P 500

index had fallen 0.6%.

BofA Securities analyst Justin Post wrote Friday that Twitter’s first-quarter income was in line with expectations, although U.S. model promoting was gradual in January and February. He famous that consumer development was a tick decrease than anticipated.

Post referred to as the corporate’s second-quarter outlook complicated, arguing that the decision ought to have been greater provided that administration pointed to a restoration in spending by manufacturers in March. The firm stated income is more likely to be between $980 million and $1.08 billion, whereas the consensus view on Wall Street has been that the determine must be $1.06 billion.

Wedbush analyst Ygal Arounian wrote in a observe on Friday that he thinks Wall Street will focus on the slowdown in consumer development, noting that buyers are more and more centered on whether or not customers stay engaged with apps reminiscent of Twitter now that the pandemic is receding within the U.S.

“Twitter’s digital advertising peers all saw significant beats on revenue with guidance ahead of 2Q expectations, meaning Twitter, so far, has participated somewhat less in the digital advertising market rebound,” Arounian added.

In a observe titled “This Birdie Finds Turbulence Out of Thin Air,” MKM Partners analyst
Rohit Kulkarni
referred to as it a blended quarter for Twitter. He stated promoting income development appeared to lag behind friends like

Pinterest

(PINS) and

Snap

(SNAP), which reported earlier in April. He too famous that Twitter’s consumer development was softer than anticipated.

“While yesterday’s results do not inspire confidence in management’s ability to hold a steady cadence in fundamentals, we think Twitter remains a solid ‘re-opening play’ with live sports and events over the summer,” Kulkarni wrote.

Oppenheimer analyst Jason Helfstein can be looking forward to the return of reside occasions, saying their suspension has been weighing on income development.

“While the market reacted to weaker 2Q outlook, following upbeat investor day, we are more upbeat on product cadence and expect Brand strength,” within the second half of 2021, Helftstein wrote.

At least for now, buyers appear much less optimistic.

Write to Connor Smith at connor.smith@barrons.com