Benzinga | Oct 27, 2021 01:46PM EDT

Why Twitter Shares Are Tumbling Today

Twitter Inc (NYSE:TWTR) is trading significantly lower Wednesday after the company announced mixed third-quarter financial results.

Twitter reported a quarterly earnings loss of 54 cents per share, which came in below the estimate for the company to earn 15 cents per share. The company reported quarterly revenue of $1.28 billion, which was in line with estimates.

Twitter's average monetizable daily active users reached 211 million in the third quarter, representing a 13% increase year-over-year.

Twitter expects fourth-quarter revenue to be in a range of $1.5 billion to $1.6 billion versus the estimate of $1.58 million.

"I am proud of our third quarter results. We're improving personalization, facilitating conversation, delivering relevant news, and finding new ways to help people get paid on Twitter," said Jack Dorsey, CEO of Twitter.

Keybanc analyst Justin Patterson maintained Twitter with an Overweight rating and lowered the price target from $81 to $70.

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TWTR Price Action: Twitter initially gained on the quarterly report before falling during Wednesday's session.

Twitter has traded as high as $80.75 and as low as $38.93 over a 52-week period.

The stock was down 9.58% at $55.55 at time of publication.