Is Twitter Doomed?

[Scottish Business Owner]

I don't quite understand why something like Twitter can make such vast losses and yet continue to keep spending money. I don't think it's clear what it's monetisation strategy is even yet so what is it people see in Twitter that gives it such an ability to tap shareholders for more cash?

"Shares in microblogging site Twitter fell by 24% after it reported slower growth in user numbers.

Twitter averaged 241 million monthly users in the last quarter of the year, up just 3.8% on the previous quarter.

That represents a slowdown compared with a growth rate of 10% seen at the beginning of 2013.

The company also reported a net loss of $645m (£396m) for 2013, just three months after its flotation on the New York Stock Exchange."

Read the full BBC article here >>> http://www.bbc.co.uk/news/business-26059710

 

[MrsDev]

I've just skim read the article, I never realised you could purchase advertising space to have your tweets show in users feeds. I've never come across that option whilst browsing twitter on the front end but then I don't use twitter a lot.

I can't escape face books opportunity to advertise as it's always promoting me to turn my posts into adverts and giving previews of what it will look like!

 

[Robert Frost]

Hmmmm I havent come across many adverts on Twitter but I think i turned them off LOL

 

[saltire]

It seems like these tech companies don't play by the normal rules. The valuations placed on these companies is staggering.

You just have to look at the acquisition of What's App by Facebook. 19 BILLION DOLLAR! WTF!

http://www.bbc.co.uk/news/business-26266689

There's also quite a bit of talk about Twitter shares being overvalued as well here >>>> http://www.marketwatch.com/story/will-twitter-ease-worries-of-overvalued-stock-2014-02-04

I won't be buying shares anyway

 

[Robert Frost]

No I won't be buying any shares either LOL

 

[Gemma Rowlands]

I wouldn't want to buy shares in any kind of social media company, because they're still too much of a new thing. Nobody knows what they're going to grow to become including, it would seem, the companies themselves. They're changing so much all the time, and of course there will be the natural surge when they become popular which will then lower as people just get used to the websites and see them as more of an everyday kind of thing. I personally deleted my Facebook account back in January because I didn't see it fit for the purpose that I had created it for, and although I haven't yet done the same with my Twitter account I may do it soon.

I would ASSUME that the company have an idea of how to make more money, but they're going to have to get started pretty quickly!

 

[saltire]

It's mental these companies survive. They just dont live by the same rules as the rest of us

I seen a programme on TV last night about Amazon. Incredibly Amazon is valued at $170 BILLION! but yet it makes very little in the way of profits.

Some of the valautions placed on these companies in incredible!

 

[eeyorebob]

I dont get it, why would you buy shares in something that may not last? wuldnt that then make you liable if they failed? I'm sure i've read that somewhere! I avoid the stock market for this reason

 

[Gemma Rowlands]

I dont get it, why would you buy shares in something that may not last? wuldnt that then make you liable if they failed? I'm sure i've read that somewhere! I avoid the stock market for this reason

Shares are always a bit of a gamble, though, aren't they. You don't know what they're going to do next, what they might invent - so when the prices are low many people they should have a punt and just give it a go!

I would never ever invest any money into shares that I couldn't afford to lose.

My one and only experience of the stock market actually resulted in me making quite a lot of money.. so I'm reluctant to try it ever, ever again because I want to be able to report that I was a success ha ha. I bought at the lowest, sold at the highest. Total fluke, but proud of myself all the same!

 

[Pete Brindle]

It's mental these companies survive. They just dont live by the same rules as the rest of us

I seen a programme on TV last night about Amazon. Incredibly Amazon is valued at $170 BILLION! but yet it makes very little in the way of profits.

Some of the valautions placed on these companies in incredible!

How is a company with low profit valued at that much though?

As for Twitter, I think its potential is HUGE with such a massive chance to an extended audience. So I think they will have to consider their advertising strategy.

 

[Gemma Rowlands]

How is a company with low profit valued at that much though?

As for Twitter, I think its potential is HUGE with such a massive chance to an extended audience. So I think they will have to consider their advertising strategy.

I think you hit the nail on the head when you mentioned the audience. People want a business that has instant access to a lot of people, and I doubt there are very many that give you access to the number that Twitter does!

 

[Pete Brindle]

I think you hit the nail on the head when you mentioned the audience. People want a business that has instant access to a lot of people, and I doubt there are very many that give you access to the number that Twitter does!

The owners certainly wouldn't struggle to find a buyer if they decided to sell. The majority of the up and coming generation have a Twitter account, and I know that a growing number of older people do, too.

 

[justDAJ]

The losses are staggering. It always amazes me that people wish to invest in a company making such a massive loss. No other business would receive the financial backing the social media giants seem to get.

 

[Gemma Rowlands]

The losses are staggering. It always amazes me that people wish to invest in a company making such a massive loss. No other business would receive the financial backing the social media giants seem to get.

As has been said above though, it's purely to do with the potential outreach. I don't know how many people regularly log into Twitter but it's in the millions.

 

[justDAJ]

The last stats I read at the beginning of 2014 quoted 115 million unique users each month. An impressive number.

However, Twitter are so far failing to monetise our tweets and cash in on this massive user base.

 

[Pete Brindle]

The last stats I read at the beginning of 2014 quoted 115 million unique users each month. An impressive number.

However, Twitter are so far failing to monetise our tweets and cash in on this massive user base.

They could have a plan! Users HATE advertising so perhaps they're biding their time to make sure we're completely addicted before they hit us with it!

 

[justDAJ]

Best not wait too long; people move on.
Look at the kids deserting FB!

 

[Pete Brindle]

Best not wait too long; people move on.
Look at the kids deserting FB!

True I suppose. At one time people would have checked it several times a day, now I see people saying they don't log on at all, or that they have even deleted their account.

 

[Gemma Rowlands]

Pete - I deleted my personal Facebook account a few months ago because I was fed up of seeing the same things. Attention seeking and cryptic statuses obviously wanting to cause trouble! I had thought I would be better off out of it, and I am. And nobody I know in "real life" has my business account added, so that's good. I do see more and more people making the same decision, and there must be a reason for it. It's becoming something that's draining us rather than being the positive thing that it was when it was created.

 

[Pete Brindle]

Pete - I deleted my personal Facebook account a few months ago because I was fed up of seeing the same things. Attention seeking and cryptic statuses obviously wanting to cause trouble! I had thought I would be better off out of it, and I am. And nobody I know in "real life" has my business account added, so that's good. I do see more and more people making the same decision, and there must be a reason for it. It's becoming something that's draining us rather than being the positive thing that it was when it was created.

I definitely know of some people who would fit in the attention seeking categories. Oversharing all the time.. but I think a lot of people I know are starting to grow up a little bit now!