Twitter reported second-quarter results early Friday that missed estimates as a weak ad market and the attempted takeover by Elon Musk took a big toll. Twitter stock edged down.
The company reported an adjusted loss of 8 cents a share on revenue of $1.18 billion. Analysts had expected Twitter to report earnings of 14 cents a share on revenue of $1.32 billion.
Revenue fell 1% from the year-ago period.
Twitter stock edged down o.8% to close at 39.84 on the stock market today.
The revenue and earnings slide "reflects advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk," the Twitter earnings release said.
Twitter said costs and expenses totaled $1.52 billion, an increase of 31%. Costs related to the pending acquisition of Twitter were approximately $33 million in Q2. Severance-related costs were approximately $19 million in the quarter, it said. The net loss was $270 million.
Snap, which reported quarterly results late Thursday, also showed a pullback in advertising, from which both companies get almost all of their revenue. Snap stock plunged as results missed estimates. The company also declined to provide a third-quarter outlook. Plus, it said it will "substantially slow our rate of hiring, as well as the rate of operating expense growth."
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