Twitter’s share price has been on a slow slide. It has an all-time low price of $14 a share, and its revenues growth slowed to 1 percent. Some investors understand this a signal that Twitter is losing strength compared to other social networks.
Twitter’s revenue dropped to $548 million, which is an 8 percent decline compared to the same period last year. However, it’s not all bad news. In the last quarter, Twitter’s daily active user base grew by 11 percent, as well as its losses shrunk by about 23 percent to just $62 million.
Twitter isn’t a profitable company yet
Twitter’s latest news are not so good, but its shares had beaten Wednesday Wall Street’s estimates in a positive way.
The company ended the quarter with $548 revenues, above the $513 million expected by analysts. However, its revenues continue to decrease year after year. As well, there was a visible progress in the average monthly active users, which reached 328 million, up 6 percent compared to the 4 percent increase in the previous quarter. Compared to 2016, the daily active users’ average grew 14 percent.
“That’s clearly progress from the stagnation we’ve seen over the last couple years,” says Jan Dawson, analyst at Jackdaw Research, noting despite the boost overall user growth is still “pretty low”
Tough the impact of the social network on society is undeniable, investors are getting worried about these numbers. It seems that Twitter as a company still isn’t profitable
Twitter is the best way to show what is happening in the world
Twitter Chief operating officer, Anthony Noto, said that there is a remarkable growth due to the Trump phenomenon in Twitter. New and resurrected users in the U.S wanted to know about news and the political personalities. Twitter continues to be an important media to share what is going on worldwide, giving people the chance to discuss about it.
“We believe Twitter is the best at showing what’s happening in the world and what’s being talked about,” said Noto on a conference call to discuss results. “Having the political leaders of the world as well as news agencies participating and driving that is an important element to reinforcing what we’re best at”
Twitter has also advanced on abuse, identifying and removing accounts exhibiting abusive behavior. According to the company, reports of abuse have decreased in the last months. In March, for example, the company said that it would use an algorithm to eliminate abusive accounts and to allow users to mute keywords, phrases or full conversations. Twitter said there are a lot of accounts created just to harass others.
However, besides these relative successes, the big question remains: Can Twitter find a way to reverse the slide in its revenue, while it seems that other social networks – Facebook, Instagram, or Snapchat – continue to report larger daily user bases.
Source: The Verge