Boston, MA 02/04/2014 (wallstreetpr) – The Big Moment is finally upon us as Twitter Inc (NYSE:TWTR) unveils its first public quarterly results today. All eyes will be focused, many of them on the financials but many on the answers they are seeking about the company.
The Questions:
The flawless IPO and the stock performance after the IPO had many analysts worried about Twitter Inc (NYSE:TWTR)’s valuations. The social media platform has very few companies and Twitter could not be compared directly with the grand dame, Facebook Inc (NASDAQ:FB). Facebook has several years behind it and it has garnered up a very impressive active user base. It is very strong in advertising revenues as these are also dependent on the user base. There are also reports that Facebook is losing its teen age group user base.
Analysts will be trying to determine Twitter’s standing vis-à-vis Facebook. They will be looking at the advertisement revenues as these contribute about 90% of the social media platform’s revenues. The user base will also come in for some close scrutiny, to first of all determine if Twitter has been able to attract Facebook’s erstwhile group into its fold. And secondly, to even assess if such social media platforms are losing their charms to newer kids on the block.
Time Is Of Essence:
Time, however, favors Twitter Inc (NYSE:TWTR). It is still not that old, it is also successful in providing relevant content to its users and it does not seem to have lost its popularity. No other social media platform is able to grow in the segment addressed by Twitter. In fact, Facebook is copying many features from Twitter, this shows the popularity of its content and its relevance to today’s consumers. Has this been enough to attract advertisers and are they able to derive value from it? This is an important question as after all Twitter is in the business to make money.
