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Bloomberg
Twitter Inc tumbled 13% after the social media company posted a sluggish start to the year in its advertising business and gave a disappointing revenue forecast, a sign the social media service hasn’t fully capitalized on the digital advertising boom amid the pandemic like companies such as Facebook Inc. and Google.
Sales were slow during the first months of 2021 after a busy holiday season, and some advertisers pulled back their spending because of the riot at the US Capitol on January 6, company executives said.
Revenue gained 28% in the first quarter, in line with analyst estimates, but notably lagging behind the growth at some of Twitter’s digital advertising peers. Facebook and Alphabet Inc.’s Google this week reported quarterly sales that smashed analysts’ estimates, buoyed by businesses pushing commerce and travel, which are expected to bounce back as lockdowns ease.
It’s disappointing that Twitter “didn’t catch this wave†in online advertising growth, though there will be more opportunities ahead, analyst Justin Patterson at KeyBanc Capital Markets wrote in a note to investors.