CNBC Pro

Breakingviews: Twitter will need more than just user growth for investors to stick around

Breakingviews
Jennifer Saba
Share
Jack Dorsey, co-founder and chief executive officer of Twitter.
David Paul Morris | Bloomberg | Getty Images

Twitter has undeservedly attracted a bunch of new followers. The struggling social-media company touted surprise user growth as evidence it can get back on track under moonlighting Chief Executive Jack Dorsey. Revenue, however, fell eight percent in the first quarter, a first since Twitter went public in 2013, as advertisers grew skeptical.

Although it remains a long way from its early 2014 peak, Twitter's market value shot up 12 percent on the morning after delivering its results on Wednesday. In the absence of any clear financial rationale, investors seem to have seized on the ephemera of eyeballs.

More In Pro News and Analysis

CNBC ProInvestors shouldn't be shocked that Biden wants to raise taxes on the rich, strategists say
CNBC ProBiden capital gains tax plan for rich expected to pass, but with some changes
CNBC ProThese stocks are Wall Street analysts’ favorites – and they’re on discount as the market falls