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Reported That: Twitter Shares Drop On Slowing User Growth

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According to report Shares of Twitter dropped in after-hours trading as the company’s four-monthly results showed user growth faltering.

Twitter informed that a net loss of $90m (£62m) for the last three months of 2015 versus a loss of $125m a year ago.

Its user growth stall, with 320 million average monthly practical users – the same number as the quarter of previous, the social media saw.

In the Twitter’s history, this is the first quarter that the number of monthly active users has not grown.

According to the matching analysts’ expectation, if we compare to the fourth quarter of 2014, the Revenue for the quarter rose by 48% to $710m.

After the results were announced, Immediately Twitter shares dropped 10% in after-hours trading, before recovering to a 3% loss.

Brian Blau, research director, said at Gartner,” with no growth in new users, but otherwise good financial performance, Twitter hasn’t yet shown how it can rise from the troubling spot of not being able to grow the business,”

Analysis: BBC North America Technology Reporter, Dave Lee, San Francisco

  • If you discount SMS-only users – who don’t really count – Twitter lost two million users in its last quarter.
  • Unacceptable and Unprecedented for investors
  • Yet new features, advertising campaigns and the constant publicity activity Twitter enjoys, it didn’t grow a jot.
  • Now, Twitter called it a periodic break and were poised. It’s made up lost ground in the current quarter.
  • But he will not cut.
  • Here’s big changes are required, but the left behind 307 million users may not like it. Maybe it’s time to ignore users and just get to work.
  • However its types of retweets, or use hearts instead of stars, Twitter users en masse say “no no no”.

And Twitter said its user base increased in January, in its results,

Other opposing social media sites have seen their user bases grow such as Instagram has 400 million, Facebook has 1.5 billion users and even they Despite launching four years after Twitter.

Investors were also disappointed in Twitter’s revenue forecast for the first quarter of 2016. The company projected revenue for the first quarter ranging between $595m and $610m, well below analysts’ estimates of $627m.

Product changes

Investors had been forecasting the announcement, here are the significant changes required to Twitter’s product that would be offerings to increase the user base.

On Wednesday, the company announced earlier that it would be introducing a new feature that shows the best tweets at the top of a user’s feed, rather than showing tweets in reverse chronological order.

Some users sensed the change would kill the social network and began to use the hashtag #RIPtwitter in protest.

The company said it was building on the launch of its live video streaming product, planning on improving its video offerings, Periscope, in March.

Twitter have shares more than halved since its chief executive Jack Dorsey – and one of the site’s founders – returned to Twitter in July.

The company has never reported a quarterly profit till now.

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