Boston, MA 01/02/2013 (wallstreetpr) – Twitter Inc (NYSE:TWTR) witnessed a bumpy ride during the last days of 2013. After shedding almost 17% of value, it succeded to ring in the New Year in green. The stock of the promising social network was up by 5% and closed at $63.65 during the Tuesday’s close.
Macquarie’s Lowered Ratings To Blame
While Twitter Inc (NYSE:TWTR) is perceived to be one of the company who has been able to keep its investor’s spirit high, but Macquerie’s revised ratings spoiled the show. The financial services firm Macquerie was quick to assign ‘underperform’rating to the stock from that of its earlier rating of ‘neutral’. Analyst at Macquerie, Ben Schachter, said that though the micro blogging company has a bright potential but the sudden rise in stock value around Christmas is unexplained.
Popularity Factor
Moreover, a recent study by Pew Research Center indicates that Twitter Inc (NYSE:TWTR) has not been so attractive in terms of usage as that of FaceBook and LinkedIn. Twitter and Instagram’s user bases is popular among young demographic as 31% and 37% in the age group of 18-29 demographic use these services respectively,as against the 9% and 6% in the 50-64 demographic. 46% of the Twitter users claim that they check in daily, a level much below than the Facebook’s 63% and Instagram’s 57%.
Twitter Inc (NYSE:TWTR) scores higher than Pinterest in terms of engagement, but 46 percent of respondents surveyed go onto the online messaging service daily, as compared to 23 percent for Pinterest and just 13 percent for LinkedIn.Industry experts opine that Twitter is less spontaneous than Facebook and thus act as a turn off for users, which is a significant constraint for it to grow as a mainstream social media platform.
Inspite of all the odds, Twitter Inc (NYSE:TWTR) is still a strong company, quite evident in the way it approached 2014 by recording a 56% growth in December alone despite the volatility factored in.
