Twitter’s revenues drop though the user growth accelerates

Twitter’s share price has been showing since November 13, a long, slow slide. it is now trending around $14 a share, as all time low, but the stock price was more by 10 percent in premarket trading after the company reported today strong user growth.

Twitter’s daily active user base, last quarter, increased by 11 percent, but the growth of revenue slowed to 1 percent, below the growth rate of 48 percent for the same period in 2016. Investors understood this sign and started losing faith and started moving to Instagram that are popular services.

This quarter was the same. The daily average user count was more by14 percent, but its revenue came down to $548 million, revealing an 8 percent decline from the same period last year. The company is not showing profits, but it highlighted the fact that the losses shrunk by nearly 23 percent to just $62 million.

Twitter around the world is a central part of the news cycle, although it is not the fever pitch like it was when President Trump at 3AM each morning was firing off political commentary. During 2016, the company generated new momentum. But in the last two quarters it has become just new users are finally moving to their platform.

The biggest question is if Twitter can reverse the slide in its revenue. It is now competing against Instagram, Facebook and Snapchat, all have larger daily user bases. Twitter is moving away from advertising to broadcasting big live events.

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