Twitter: Q2 2016 without positive surprises

Twitter still does not convince the market and to experience insufficient growth. Reporting its second-quarter earnings, Twitter fell short of expectations with a $107 million net loss on $602 million in sales. At a 20% gain year-over-year, this is Twitter’s slowest quarter of revenue growth since it went public. Shares dropped by 10% in after-hours trading. The social network also continues to be unable to solve the problem of growth: users do not increase in the US and are growing too little in the rest of the world. The only monthly users were 313 million, slightly above the consensus of 312.1 million.

Planned enhancements over the past 12 months by founder Jack Dorsey, back in the role of managing director, did not help to raise the situation. Fewer restrictions on 140 characters, not chronologically, but stuff that's not served to growth. And this has sparked speculation that Twitter could – in a more or less near future – become prey for larger acquisitions by player.

"We've made a lot of progress on our priorities this quarter," Dorsey said in a statement. "We are confident in our product roadmap, and we are seeing the direct benefit of our recent product changes in increased engagement and usage. We remain focused on improving our service to make it fast, simple and easy to use, like the ability to watch live-streaming video events unfold and the commentary around them."

For the third quarter, Twitter said its sales are expected to reach $590 million to $610 million.