Twitter posts worst day since 2014 after meager new-user growth

Divya Balji, Bloomberg News

The Twitter Inc. logo is displayed on the company's preliminary prospectus arranged for a photograph in Washington, D.C., U.S., on Monday, Oct. 28, 2013. Twitter Inc., which embarks on its road show to investors today, will make the case to potential investors in its initial public offering that it needs to keep spending to grow, and profit will come once it can reap the benefits of those investments. Photographer: Bloomberg/Bloomberg , Photographer: Bloomberg/Bloomberg

Twitter Inc. posted its worst day since 2014 after the company’s third-quarter results showed fewer new users than analysts had projected.

Shares of the social media company plunged 21 per cent after saying it added just a million new daily users in the third quarter, 8 million fewer than analysts estimated, despite the return of live sports and a U.S. election campaign that were expected to drive people to the platform.

Friday’s drop erased US$8.8 billion in market value. However, the stock is still up 88 per cent since its recent low on March 18.