Although Facebook is caught up in several scandalous affairs at the moment, it still seems to be doing good business with investors, as is evident from stock prices. Twitter is however facing Wall Street issues. Following its decision to go public back in 2013, the social media revealed its first full year profitability which showed a 10% decline. Last quarter saw Twitter break revenue expectations of $868.1m by earning $909m. But bad news isn’t far away. Reportedly the company has lost 9 million monthly active users sending the current count to 321 million. This loss can be blamed on either the fake accounts and bots purge or shedding of fed-up users. Yet Twitter plans on spending more money. It plans on not sharing or reporting that metric in the future. Instead it has plans of focusing on daily active users, which refer to those individuals who view advertisements and help Twitter make money.
Analyst Patrick Moorhead believes that without growth, investors will not as interested in Twitter as they are in Facebook, which is growing continuously. He adds that firms like Twitter are all valued according to the growth they experience and hence the ceasing of growth can prove detrimental to the future of Twitter, which reported 126 million daily users. The number is a rise from the 115 million a year before. Facebook, on the other hand, has 1.26 billion users in spite of ongoing scandals.
Ivan Feinseth says that like Google and Facebook, Twitter had been used as a platform for spreading misinformation. Moreover, it is still not the first choice platform for advertising and revenue of Twitter is being driven by monetizing customer base, he added. Analyst Colin Sebastian says that for Twitter this year will be an ‘investment year’ as it tries to tackle abuse on its platform and increase its daily active user base. He however adds that despite stiff competition from Facebook and Google, Twitter has made its place among both advertisers and users.