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Can Twitter Stop Revenue from Falling Further?

Can Twitter Stop Revenue from Falling Further?

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    Feb 12, 2016   Author : admin

Posted in: OPINION

It was back in 2006 that the world’s first ever tweet was sent. “Just setting up my twttr” was the social network’s equivalent to “One small step for man...” and since then it has taken the world by storm.

Currently, Twitter has over 300 million active monthly users and about 6,000 tweets are sent every single second. So why is the company’s revenue dropping and what can they do about it?

The Leadership Aspect

One issue that many analysts have pointed to when considering the firm’s recent poor stock market performance is that CEO Jack Dorsey also runs Square Inc. It is highly unusual that someone takes on the demanding task of running two big companies at the same time.

If we go back a few months, we can see that in the summer of 2015 Dorsey issued a warning on profits and this caused the share price to fall almost immediately. The CEO said that more had to be done to make Twitter easier to use and to grow the amount of users. 

Are More Potential Users Out There?

One possible analysis that has been aired is that the management team simply don’t know how to encourage more people to sign up and start using their service. Could it be that pretty much everyone who is interested in Twitter is already using it?

The network’s developers have made it clear that they weren’t really sure at the outset how Twitter would grow, as it wasn’t replacing anything and no-one knew exactly how people would use it. The explosion and then slow-down in the number of users and tweets since then has led to the belief that perhaps Twitter has already reached its natural limit.

If falling revenues and stock prices are to be arrested then something needs to be done to attract millions of new users to Twitter. Of course, with so many social media networks and information services around these days that is easier said than done. 

Only time will tell whether Twitter can resume its remarkable upwards growth curve or whether it will eventually be consigned to the status of being a highly popular site that ultimately has a more limited appeal than we once thought.

Images: GeekEasier.com, DigitalTrends.com | MYC Writer: Robert Bell

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