Twitter News: What Lies Ahead the Microblogging Site After Turning 10 Years?
Twitter turned 10 last March 21, but skeptics are doubtful if the ten years of existence of the microblogging site should be a reason for the company to celebrate. After all, Twitter is marred by some problems it needs to contend with, such as its spiraling stock price and the uncertainty on whether it can still continue accommodating users.
Despite Twitter's founder, Jack Dorsey, returning to helm Twitter once more last year, his renewed presence in the company doesn't seem to be helping much. While it is true that the fiscal growth of the microblogging site for 2015 was still strong, hitting the $ 2.2 billion mark, the number of its monthly active users (MAU) stagnated as figures showed that 2015's fourth quarter figures were no different from the ones recorded in the previous quarter.
As if the lack of movement of the MAU figures weren't enough, analysts have also forecasted that Twitter's advertising revenue is set to drop to 35 percent in 2017 from its current year's 45 percent.
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As MAU is a key factor for investors, it is not really surprising why Twitter dropped to $17 from its originally $26 initial public offering (IPO) price.
However, not all analysts share the pessimism on the fate of Twitter. For instance, IHS advertising research analyst Eleni Marouli said that things are not that bad for the microblogging site as there are half a billion people accessing its site without signing in. If the number of signed in users as reflected by MAU and the number of non-signed in users are combined, the total number of Twitter users can reach a whopping 820 million.
"They haven't been able to communicate their success that well to investors which is why the Street is not happy," Marouli said in an interview.
New York magazine opines that, regardless of the extent of how terrible Twitter might become, it is here to stay. Despite its lack of appeal to the masses, who deem it as inessential or impenetrable, it is still one favorite source of news by various media organizations. With this, as long as there are people who talk about what's happening on Twitter, there will always be Twitter, the magazine said.
