Pandora and Twitter stocks each took a beating Wednesday, during what was generally a positive session for the overall market. Twitter fell as much as 18% in after hours trading and Pandora stock dropped 11%. It was Twitter's first full report to the markets since going public and Twitter just released and showed revenue and earnings ahead of most estimates by analysts. So why the drop?
Pandora almost matched analyst's expectations for the quarter with revenues of $200.8 million vs. a forecast of $201 million. The company beat analyst's expectations with an EPS of $0.11 versus $0.08, according to Business Insider.
But future revenue projects from Pandora were lower than analysts expected: $170 million vs. a projected $176 million for the quarter and $870 million vs. $896 million for the year.