Boston, MA 03/18/2014 (wallstreetpr) – Twitter Inc. (NYSE:TWTR) Chef executive officer is scheduled to meet government officials and students in his first visit to China something that is causing a buzz especially on the unknown mission of the visit. This could signal unprecedented move by twitter of trying to tap into China lucrative internet industry that is estimated to have up to 600 million users.
The chief executive officer lands in the country with Twitter having been banned in the country since 2009 although there has been announcement that the trip is only personal. This could signal a change of heart from Twitter Inc. (NYSE:TWTR) considering Facebook Inc (NASDAQ:FB) owner Mark Zuckerberg has from time to time emphasized on his desire to one time enter into the Chinese market.
Major internet companies have faced harsh operating conditions in the country with some of them such as Google being forced to pull out arguing there is too much censorship from the government. The move by Costolo could signal negotiation with the Chinese officials in a bid of lessening their hard stance on the major global internet and social networks. The CEO is also expected to meet university administrators and participate in negotiations with students at Fudan University.
Twitter growth slows down in the US
Twitter Inc. (NYSE:TWTR) saw its shares surge by up to 73% after the opening day of the IPO but has seen its popularity slightly drop in the US. The US alone contributes 30% of the total monthly active users and contributes 77% of the total revenue. It is being reported that monthly active users in the U.S. is slightly slowing down, something that could hurt Twitter growth potential.
Twitter saw its monthly active users grow by only one million in the past two quarters compared to a high of three million for the same period the prior year.
Twitter Inc. (NYSE:TWTR) was slightly unchanged on Monday trading session only going up by $0.25 to close the day at $52.05.
