The new-user count for Twitter hardly budged in the fourth quarter strengthening doubts about the social media site nearing stagnation and making advertisers and investors turn away from it. The last few months have been anything but easy for the social media site with the growth in audience numbers remaining disappointingly low. The company filed an IPO in 2013 but still couldn’t bring more users into its folds.
Many users rued that the social media website was too niche – a complaint that was taken into consideration by CEO Jack Dorsey by attempting to make the site more ‘mainstream.’ The product’s contemporaries have raced ahead while Twitter still struggles to add new users and makes the profits it has dreamt of.
When news about the site’s dismal fourth-quarter performance began to trickle in, Twitter chose to instead perk up the situation by talking about how it was introducing new tweaks to its product and was on the verge of introducing features such as live events and video streaming. The company is evidently trying to assure Wall Street analysts that its new moves are all aimed at enticing more investors. The company’s head honcho has even spoken of plans to bring brilliant new talent on board.
Despite these positive statements, what has become clear is that Twitter’s inability to draw more users is hurting the future of its core product – and where users don’t venture, investors most certainly don’t. Thursday’s events caused Twitter shares to slide 4.2% as of 2.18 pm (New York).
Since the third quarter, the number of monthly active users on Twitter has reportedly not moved from 320 million. This was surprisingly lower than the 324 million user count that analysts had projected. However, the company said that it would no longer count Twitter users on non-smartphone devices in its quarterly user count.
With Twitter’s woes only intensifying over the last year, the company has become the target for an acquisition. Whether this will turn the company’s fortunes around, only time – and an actual acquisition bid – will tell.
Many users rued that the social media website was too niche – a complaint that was taken into consideration by CEO Jack Dorsey by attempting to make the site more ‘mainstream.’ The product’s contemporaries have raced ahead while Twitter still struggles to add new users and makes the profits it has dreamt of.
When news about the site’s dismal fourth-quarter performance began to trickle in, Twitter chose to instead perk up the situation by talking about how it was introducing new tweaks to its product and was on the verge of introducing features such as live events and video streaming. The company is evidently trying to assure Wall Street analysts that its new moves are all aimed at enticing more investors. The company’s head honcho has even spoken of plans to bring brilliant new talent on board.
Despite these positive statements, what has become clear is that Twitter’s inability to draw more users is hurting the future of its core product – and where users don’t venture, investors most certainly don’t. Thursday’s events caused Twitter shares to slide 4.2% as of 2.18 pm (New York).
Since the third quarter, the number of monthly active users on Twitter has reportedly not moved from 320 million. This was surprisingly lower than the 324 million user count that analysts had projected. However, the company said that it would no longer count Twitter users on non-smartphone devices in its quarterly user count.
With Twitter’s woes only intensifying over the last year, the company has become the target for an acquisition. Whether this will turn the company’s fortunes around, only time – and an actual acquisition bid – will tell.
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