Twitter just is not growing as it once was.
Social media company, said on Tuesday that its number of monthly active users totaled 307 million in the third quarter of this year, with the exception of those who use the service through text messages. While this may seem a large number, it is only 8% more users than in the corresponding period last year. Compared with the second quarter of this year, the number of users grew by only 1%.
This growth rate of 8% slow, especially in the eyes of investors on Wall Street. In all neighborhoods, so as Twitter went public in 2013, he did not disclose more slowly, according to an analysis by The Wall Street Journal.
The employees of the Japanese company Tomy toy, dressed like Twitter birds during Halloween Day events company.
Yoshikazu Tsuno / AFP / Getty Images
In important ways, Twitter has exceeded analysts’ forecasts. The company reported $ 569 million in revenue for the quarter, beating expectations for $ 560 million. And its profit adjusted to exclude certain costs, came in at $ 67 million, or 10 cents a share, better than expectations of 5 cents per share. Without these adjustments, the company made a $ 132 million loss.
But the struggle with the growth of Twitter is that investors have focused on the last year, and its shares fell more than 12% after the close of trading on Tuesday. Investors were also spooked disappointing forecast of its performance in the fourth quarter.
At the close of trading on Tuesday, shares of Twitter on 30% of the price of its traded on the first day as a public company in November 2013. In the first day, while investors assessed the loss-making company’s nearly $ 25 billion , betting that it will grow in an explosive manner familiar to those who followed the internet success stories like Facebook and Google. Instead, the company struggled.
Just look at this chart. One almost gets the feeling that Twitter is slowly deflating balloon. Each quarter, a little more air leaks.
People are an important ingredient in the Twitter business plan. More people using the service means more eyeballs are viewing your ads and other promotions, thus generating more revenue for Twitter.
Twitter does some things to try to attract more people. It recently introduced a point, which enables people to follow a specific history, and it is planning to run an ad in the World Series today.
But so far, Twitter has been able to make a shinny-Stick- in the form of growth, investors love. This is not Facebook, a company that has overcome the initial hit after its IPO, drastically sharpening its focus on mobile devices.
Here is another version of a growth chart by focusing on the United States. The big question on Twitter – and fear to keep investors in the night – is growing by just started to dress