Stock markets were today in the red after Apple shares sank by seven per cent. At the same time, Twitter shares dived by 12.3 per cent after the social media site report a revenue of $594.5millon (£406m), against expectations of around $607million (£415m).
Apple had revealed last night, its first drop in revenue in 13 years and a decline in iPhone sales.
Twitter also disappointed investors by forecasting lower revenue than expected for the second quarter of 2016.
The social network giant also only posted a small increase in monthly users.
Worse than expected results from Apple and Twitter have heightened that values in some of the world’s biggest tech firms are over inflated.
Arvind Bhatia, analyst with CRT Capital, said: “It’s obvious Twitter is having trouble.
“It’s not growing anywhere close to where people expected a while back.”
Apple reported revenues of $50.6billion (£34bn) for the first three months of the year, tumbling by 13 per cent from the year before.
Laith Khalaf, senior analyst at Hargreaves Lansdown said the firm’s “tremendous growth record has finally been brought to an end”.
He added: “In the first quarter the tech giant was hit by economic weakness in key markets, Asia in particular, and the absence of a new iPhone launch to drive sales.
“The end of such a prodigious period of uninterrupted growth will inevitably lead investors to question whether this is a turning point for Apple.”
India’s fourth biggest IT services company, HCL also missed revenue growth and profit estimates in its third quarter. HCL Tech was the top Nifty loser today.
source:expressuk