Twitter execs' brutal honesty not working for stock

Anthony Noto
Brendan McDermid | Reuters

Investors are used to being lied to.

Look no further than this earnings season when companies gave dismal guidance last month only to report much better-than-expected results a few weeks later.

Twitter management hasn't gotten the memo.

On the conference call discussing second-quarter earnings Tuesday night—and on the first-quarter call as well, Twitter management's candor about its inability to grow users fast enough and credibly form a plan to do so in the future has caused Wall Street to give up on the stock.