Twitter sinks after saying its monthly user base continued to decline (TWTR)

Twitter beat on both the top and bottom lines.
The social-media company reported a drop in fourth-quarter monthly active users, marking three consecutive quarters of user decline.
Shares fell more than 7%.
Its social-media peer Snap, which also suffered a declining number of daily users in the second and third quarter, said on Tuesday that its daily user base has stabilized in the fourth quarter.
Watch Twitter trade live.

Twitter was down more than 7% to $31.65 a share early Thursday after saying its monthly user base has continued to decline.

The social-media company said it has 321 million monthly active users in the fourth quarter, in line with Wall Street forecast, but down 9 million on a yearly basis. It has posted three consecutive quarters of drops in monthly active users.

As for the rest of the report, the company said it earned an adjusted $0.31 per share on $909 million revenue, topping the $0.25 and $869.5 million expected by analysts, according to Bloomberg data.

In August, Twitter said in its second-quarter earnings release that it had suffered its first ever decline in monthly active users. That trend continued in its third quarter , when the company said its number of monthly active users fell by 1% from a year earlier.

Social-media peer Snap, which also suffered through its own decline in the number of daily active users in the second and third quarter reported on Tuesday. However, it announced it stopped bleeding users in the fourth quarter.

Twitter was up 18% this year through Wednesday.