This
article was originally published by Seeking Alpha on May 28, 2014
By Sarfaraz A. Khan. Research Asst. Gohar Yousuf
During the conference call, Twitter's head Richard Costolo credited "increased engagement and user growth" for the company's impressive top line growth. A deeper look inside the company's quarterly filing, however, reveals some alarming trends.
If Twitter's monthly
active user growth rate continues to drop at this pace, then this key metric
could drop to zero before the end of this year. This is shown below in the red
dotted line …. Read full article at Seeking Alpha.
By Sarfaraz A. Khan. Research Asst. Gohar Yousuf
Twitter’s
growth rates for monthly active users could come to a standstill. Data on user
engagement isn't encouraging. Twitter's shares might remain under pressure
until the company figures out a way to improve its two key metrics.
Twitter (TWTR) is in trouble.
Last month,
the company reported its first quarter results
in which its revenues increased by 119.1% from the same quarter last year to
$250.5 million.
During the conference call, Twitter's head Richard Costolo credited "increased engagement and user growth" for the company's impressive top line growth. A deeper look inside the company's quarterly filing, however, reveals some alarming trends.
Twitter is
still adding millions of new users in each quarter but its growth is slowing
down. In the first quarter of 2014, Twitter reported a 25% year-over-year
increase in monthly active users to 255 million, a far cry from a growth of
102.9% two years ago and 47.8% one year ago.
