Twitter's earnings may spell bad news for initial public offerings (IPOs), and its surely not good news for Internet stocks.
On Tuesday, I said that Twitter's earnings and revenue were not what the Street cared about, and that what mattered was active monthly users. That number is decelerating: it was 25 percent in the first quarter, compared to 30 percent in the fourth, 39 percent in the third, and 44 percent in the second.
This is either because Twitter is reaching the limits of the number of people who are interested in the service, or there may be other messaging platforms that are available (perhaps Facebook, Instagram) that are making inroads.
CEO Dick Costolo, in an interview on our air, spent a lot of time discussing television and mobile advertising. All of that is good, but you can see from the stock reaction what the Street is watching.