Posted on
October 28th, 2014

Twitter shares fall in quarterly review

Despite the increase in users, Twitter’s investment shares have dropped. The recent report shows that although the company has increased its users by 23% since the last review, it has lost shares of 8-9%.

The site has directed its focus heavily into mobile usage, with many of us using this method to connect rather than the standard computer access. It seems like potential shareholders are seeing Twitter’s investment in existing advertising, rather than looking at new ways to engage audiences, as a risk that they aren’t willing to take.

With such a big following, it has become crucial for the site to make innovative changes and updates, to keep its users entertained and steer them away from the competition, like Facebook.

Nate Elliott, an analyst at Forrester Research, has commented on the results and said that “their user growth is mildly encouraging, but I want to see better. Users are their key metric; they need to get people using the site every day. Facebook is constantly giving people new reasons to come back to the site; Twitter needs to do more of that.”

Twitter’s Chief Executive, Dick Costolo, has defended the site’s recent performance, saying that the company has taken giant leaps towards their “aspirational goal to build the largest daily audience in the world.

‘We have to continue to grow our monthly active users and make it increasingly a daily use case for them. It’s more critical than ever to increase our overall pace of execution.”

With 284 million users currently on Twitter, it’s clear that the company is doing something right. But if they want to improve their stock shares, it seems that they are going to have to come up with exciting and unique plans for the future if they want to convince people to invest.

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