Twitter has just over 10 years as one of the most solid and well established social media platform. But now that “maturity” is no longer an issue for Twitter, the company is facing some challenges.
According to CNN Money not even President Trump is helping Twitter’s growth: “Even being President Trump’s preferred communication platform isn’t enough to save Twitter.”
That was the introduction of the CNN Money article regarding the future of Twitter.
Despite all the slow growth, Jack Dorsey, Twitter’s cofounder and CEO, he believes that “Twitter’s influence in everyones life outpace its competitors”.
The CNN Money article continues: “Twitter (Tech30) posted sales of $717 million for the fourth quarter, missing Wall Street estimates and increasing just 1% from the same quarter a year earlier.,
The lackluster sales growth was due to a decline in advertising revenue, particularly in the U.S. where ad sales declined 7%. Twitter is struggling to compete for ad dollars with larger or faster-growing Internet services.
Twitter’s user growth remains stalled. It had 319 million monthly active users in the fourth quarter, a gain of just two million from the previous quarter.
The stock fell 10% in pre-market trading Thursday following the earnings release.
“The whole world is watching Twitter,” Jack Dorsey, Twitter’s cofounder and CEO, said on a conference call with analysts. “While we may not be currently meeting everyone’s growth expectations, there is one thing that continues to grow and outpace our peers: Twitter’s influence and impact.”
I think that Twitter is one of the most important social media platforms in the market. But like any other social media company, there are huge expectations for growth and development. The article even pointed out that, in comparison Twitter has 319 million users vs Facebook reaching almost 2 billion.
Maybe Twitter will be facing a huge challenge in the next 5 years. The company will either develop something new attracting new customers – some experts are seeing Twitter more involved with Sports and Business – or facing the reality of being no more one of the leaders in the social media environment. The future will tell us.