Boston, MA 02/12/2014 (wallstreetpr) – Twitter Inc (NYSE:TWTR) continues to struggle thanks to Facebook Inc. The microblogging service, which Twitter is, posted an all-time high fourth quarter earnings for the fiscal 2013. However, its famous peer Facebook Inc (NASDAQ:FB), continued to beat the network on the earnings front as well.
Twitter’s total revenues stood at $243 million whereas Facebook declared total revenue of $2.59 billion.
CEO does not acknowledge Facebook edge
Twitter Inc (NYSE:TWTR) CEO Dick Costolo in a guarded message complemented his company staff on posting the ‘strongest financial quarter to date.’ Investors carried high expectations for Twitter following the Initial public offering back in Nov 7, 2013. The belief was the IPO would soon see substantial returns.
Twitter however fails on building numbers
Twitter Inc (NYSE:TWTR) however, has failed to show steady growth in the number of users on the microblogging site. This has meant that, the company has not been able to capitalize on the new line of advertising.
Twitter Inc (NYSE:TWTR) has in the fourth quarter been able to attract only 9 million users.
This means that there is lesser number of users to engage, leading to lesser returns for the advertisers. Facebook on the other hand has been aggressive in positioning the social network as multiple-user base. It continues to rework the services it offers and has since brought more relevant changes to move it beyond being a status-posting platform.
A point to prove is the video-based advertisements. In fact acquisition of Instagram did prove to the right move in the right direction and it ensured the younger-user based to remain engaged with Facebook.
Twitter Inc (NYSE:TWTR) relevance in today’s online connected cannot be divided, considering the socially-aggressive platform it provided during the famous Arab Spring back in 2010-11. Additionally, it took a legal stand, supporting anti-government campaigners on its platform, when the Arab governments issued legal notices.
Twitter Inc (NYSE:TWTR), relevance in today society high, whether it makes profits or not!
