SEC Questioned Twitter's (TWTR) Growth Plans Ahead of IPO

Twitter (NYSE: TWTR) is ticking lower following news that the U.S. SEC questioned growth in the social media giant's user base. In a filing made today, the SEC disclosed that it requested details from Twitter ahead of its IPO on how it planned to continue its claims of fast growth. Though Twitter's revenue more than doubled over the last year, the SEC was concerned about its user base growth slowing and whether users were less interested in viewing ads, which is Twitter's main revenue stream. Twitter said in response that growth would depend on current users becoming more engaged with the service, given that the company expected additions of new users to be slow. The company uses algorithms which would target users with related interests to make them more effective and valuable, Twitter said. Shares of Twitter are down 0.6 percent. The SEC letter is embedded below:

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