Twitter Needs Its Business to Show an Upward Trend

Twitter

Twitter released its third-quarter earnings on Thursday. There is not much of a difference since their last report, according to Recode on Oct. 25, 2017.

The company did not grow at all in the last quarter but believes differently. Last quarter the accountants say that they added four million new users. Since there is no explanation for the difference, stock reviewers are confused.

Forecasted predictions by Twitter indicate they are expecting $587 billion in revenue. However, this is down about 5 percent from the same time last year. Evidence indicates that their business is declining since this is the third consecutive quarter of the year that has shown a downward slope.

It is a good thing that Twitter’s DAU market has been growing and their daily active user audience numbers are preferable to the monthly active user growth, which is not increasing much. Since the company will not reveal the daily user stats, it makes it harder for stock experts to calculate the exact amount of growth.

Twitter has been in a pothole for a few years now. Jack Dorsey returned as the CEO about two years ago but his arrival has not resulted in an upward trend. The business has unsuccessfully attempted to make the correct adjustments so that they can move toward success. In the fourth quarter of 2015, the company was down 2 million monthly users.

Since then, the monthly user numbers reflect an up and downward trend. It has yet to become a positive slope. There is a possibility that Twitter is now ready to move forward with new ideas.

Twitter is trying to prevent its users from posting abusive and harassing comments toward others. Permanent suspensions are one of the harsher penalties for abusers and offenders. After learning that Russia sources used common platforms to influence the 2016 U.S. election, the company tightened its advertising policies.

One step the company might take would be a to announce that their CEO would resign from his position at Square, which would allow him to devote all of his time at Twitter. Some will defend the claim that changing Dorsey’s part-time role would increase his efficiency with control over the business.

Written by Antwon Rogers
Edited by Cathy Milne

Sources:

Recode: Twitter keeps facing the same problems — so how is it going to fix them?
Investorplace: 3 Stocks to Buy Instead of Twitter Inc
Nasdaq: Factors Likely to Decide Twitter’s (TWTR) Fate in Q3 Earnings

Top and Featured Image Courtesy of Photo-Mix’s Pixabay Page – Creative Commons License

 

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