Boston, MA 02/06/2014 (wallstreetpr) – Twitter Inc (NYSE:TWTR) it appears is taking a rough beating over poor performing metrics, ill-timed comparison to peer Facebook Inc (NASDAQ:FB) and post-public issue exuberance.
Back in November of 2013, when Twitter (NYSE:TWTR) proposed to go with a Initial Public Offering, the expectations were much-in-line with Facebook’s evaluation. The exuberance of the successful debut, 150% and higher, continued into the New Year and the bubble has finally burst.
The question of Valuation or over-valuation had been gaining momentum for the past months and the quarter results appear to have brought down all intense activity.
The vexing metrics which is driving at Twitter world’s existence is MAU or Monthly Active Users. This followed-up with some well-meaning comparison with Facebook Inc (NASDAQ:FB) on the matter of number of users has indeed set up some intriguing questions. Firstly, the number of Mau for Twitter grew in the fourth quarter 1 million in the US. This was over 4% growth, when compared with previous quarter.
The total number of Monthly Active Users on Twitter currently stands at 241 million and is just at one-fifth of the total at Facebook Inc (NASDAQ:FB). The last comparison with Facebook has driven down investor sentiment and the drop is nearly 21% and higher and continuing downwards, ever since the results of the previous quarter were made official.
Will Twitter go Niche or pop
Twitter (NYSE:TWTR) executives now have one question to parley. Does the social micro-blogging platform grow into a global platform sans local or niche user group usage? This is especially so when Facebook reports excessive number of users and higher engagement.
Twitter (NYSE:TWTR) in terms of value lost over $6.5 billion in stock value post-result announcement. Though, technically twitters financials report a more stable and profitable position investor sentiment appears to be upset over the lack of development on this front.
Statistically, the number of users swelled for Twitter Inc (NYSE:TWTR) by 30pc to 241m by December of 2013. Disappointingly, these numbers were much lesser, to the tune of 39% over previous year’s user graph.
According to industry analysis, it can be expected that Twitter Inc (NYSE:TWTR) can see a turnaround in investor sentiment by continuing to groom and mature its ad services. This is perhaps the only segment thus far, this quarter, which has showed profitable returns.
