Twitter falls on paltry gains in new users in third quarter

Twitter Inc. shares tumbled 18 per cent 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 per cent 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.