http://www.forbes.com/sites/jeffbercovici/2014/04/29/twitter-offers-investors-silver-linings-but-no-rainbow/
Twitter has been struggling in the 6 months since it became a public company, not because it is not doing well but because there has not been enough user growth. More and more advertisers are signing on, but user growth is relatively stagnant. Instagram and Whatsapp have both surpassed Twitter in the amount of users. However, the company and investors are still holding out hope that growth will increase and the company will continue to do well based on its business model.
Twitter has been struggling in the 6 months since it became a public company, not because it is not doing well but because there has not been enough user growth. More and more advertisers are signing on, but user growth is relatively stagnant. Instagram and Whatsapp have both surpassed Twitter in the amount of users. However, the company and investors are still holding out hope that growth will increase and the company will continue to do well based on its business model.
4 comments:
Twitter has lost more than 17% of its per share value in only the past 5 days! The news that user growth is stagnating has made investors really austere, clearly illustrated in the market's negative reaction. The real silver lining for potential investors is the fact that Twitter's now a cheaper stock in the eyes of bullish investors.
Marketing via twitter has become an essential tool for Western businesses and professionals. Twitter is a cheaper stock and it's 70% bullish social sentiment reflects this, but with its current business model I don't see how the company will have much stock value.
http://www.marketwatch.com/investing/stock/twtr
Twitter's issue of growing their subscription is definitely a warning sign for the company. With that said the company offers unique platform that is different from that of Whatsapp and Instagram. Their other competitors like Facebook might be Twitter's problem. In order for Twitter to continue its growth they have to add additional features to its platform that might bring new subscribers in.
Twitter has been around for nine years. There boom user growth periods seem to be well over. There growth will probably be fairly stagnant in the future. I agree that they will need to add additional features that attracts a new market section of users. Twitter seems to be out of its "golden years"
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