Twitter Inc (NYSE:TWTR) woes got from bad to worse after the chief financial officer, Anthony Noto, said that users who visited the platform daily dropped by 44% in the recent quarter. The news drove the stock to its 52 week low as concerns continue to grow on how fast the platform is growing.
Doubts over Twitter Turn Around
Twitter Inc (NYSE:TWTR) had initially reported its worst three-month user’s growth rate having added two million users in the quarter. The tally excluded six million users who had accessed the platform through text messages services. However, the stock was hit the hardest on confirmation that people may be losing touch with the service seen by a 44% drop in the number of people visiting.
Facebook Inc. (NASDAQ:FB), as it has always been the norm, continues to dominate the space seen by 65% more users visiting the platform in the second quarter. Twitter Inc (NYSE:TWTR) stock sunk even further on interim CEO Jack Dorsey reiterating that it was going to take long before the platform registered a turnaround in terms of growth.
Slow Growth Concerns
Slowing growth is not something new that Twitter is facing but a persistent problem that has continued to affect its sentiments on the Street. There have been calls for the company to simplify the service many new users having from time to time complained that the platform is complicated. Revenues beat expectations in the second quarter but tapered growth on the user front could eventually limit Twitter Inc (NYSE:TWTR)’s growth potential going forward.
New product features like instant timelines are yet to have any significant impact according to the interim CEO, further eliciting doubts on the platforms long term prospects. Twitter Inc (NYSE:TWTR) continues to make more money per user but because it continues to show more ads. For how long this model will continue remains to be seen especially on the fact that user growth numbers are slowing.
Twitter, Inc. (Twitter), incorporated on April 19, 2007, is a global platform for public self-expression and conversation in real time. The Company offers products and services for users, advertisers, developers and platform and data partners.
Products and Services for Users
It enables a way for people to create, distribute and discover content. It enables a user on Twitter to create a tweet and a user to follow other users. Users are followed by other users without requiring a reciprocal relationship, which is an asymmetric follow model. The public nature of the Twitter platform allows it and others to extend the reach of Twitter content beyond its properties. Media outlets distribute tweets beyond its properties. Advertisers use its promoted products, which are pay-for-performance to promote their brands, products and services. It enables its advertisers to target an audience based on various factors, including a user’s interest graph. Its promoted products are incorporated into its platform as native advertising. Media outlets, including the BBC, CNN and Times of India use the Twitter platform for content distribution. Vine is a mobile application that enables users to create and distribute short looping videos of up to six seconds in length. Users on Vine follow other users, re-broadcast content to their followers by re-vining, comment on videos and embed videos on Websites. It offers users the option to capture, edit and share videos up to 30 seconds in length directly within the Company’s application.
Products and Services for Advertisers
Its promoted products enable its advertisers to promote their brands, products and services, and extend the conversation around their advertising message. Its promoted products consist of promoted tweets, promoted accounts and promoted trends. Promoted tweets appear within a user’s timeline or search results. Promoted accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in tweets in a user’s timeline. Promoted accounts provide a way for its advertisers to build a community of users interested in their business, products or services. Promoted trends appear at the top of the list of trending topics for a day in a particular country or on a global basis. It features one promoted trend per day per geography. Its technology platform and information database enables it to provide targeting services based on geography, interests, keyword, television conversation and devices for advertisers to promote their brands, products and services. Its platform also allows customers to advertise across the mobile ecosystem across the user lifecycle. MoPub, its mobile-focused advertising exchange, combines advertisement serving, advertisement network mediation and a real-time bidding exchange into one monetization platform. Advertisers also set up campaigns directly on ads.twitter.com to run across the Twitter Publisher Network. Purchasers of advertising services monitor their advertising campaigns through campaign management, real-time analytics and advertiser application program interface (API).
Products for Platform Partners and Developers
It provides a set of tools, public APIs and embeddable widgets that developers use to contribute their content to its platform, syndicate and distribute its content across their properties. Its platform products include Twitter Cards, which enable developers to attach content and functionality to tweets and have that content appear wherever a tweet is displayed throughout Web and mobile applications; The Twitter public API, which allows platform partners to integrate the Twitter content and follower relationships into their applications; Twitter for Websites, which is a set of tools that enable platform partners to integrate Twitter content and functionality into their Websites, and Fabric, which is a platform offering modular software development kits that help developers build applications and allows them to tap into Twitter’s sign-in systems for identity verification.
Products for Data Partners
It offers subscription access to its public data feed for partners who access data beyond its public API, which offers a limited amount of its public data. Its Gnip branded products and services offer data sets to allow developers and businesses to utilize its public content.
The Company competes with Facebook, Google, LinkedIn, Microsoft, Yahoo, Sina Weibo, LINE, Kakao and AOL.
The post Twitter Inc (NYSE:TWTR)’s Turnaround In Doubt As Active Users Shun The Service appeared first on Live Trading News.