Twitter Considered Being A Promising Gamble In 2015

From the last few weeks, Twitter Inc. has been thrown into a pool of serious criticism. However, based on the changing aspects of social networking; online news media and the company’s ability have retained shareholders interest on the way to micro blogging platform this year.

The current era of social network has been the reason for the expansion of services and platforms, which are now considered to be an important part to change the perception, start mass movement, and redefined the way people connect and interact with the rest of the world.

During the last decade, Twitter Inc. and Facebook has been at the front to witness the changes took place in the world through social media. In an attempt to cope up with the problems in the plugged up and fastest growing social network, Twitter has provided a platform to the world for  quick news distribution, micro blogging, getting to know people and business from all over the world, sharing content. Twitter also started innovative trends, to provide awareness to the users about politics, sports, and businesses.

However, things are not measure so easily by The Wall Street, especially when there are huge criticisms on a company for not putting efforts towards user growth, where billions are on stake.

There has been news for past several months about the company’s performance related to user growth, monetization, user base, financial performance, ad revenue and more importantly the future guidance. The biggest distress for the company and investors is steady logged-in user base growth.

During the fourth quarter of 2014, Twitter ad revenue per user grew by 65% against Facebook, whose ARPU increased by 35% only. The average ARPU has out-shined over the years and company believes that it will increase more in future.

Twitter is in competition with linked-in, Facebook and its Instagram and others. Majority of the investor complains about the steady growth of company’s user base, by mentioning examples of its competitors. However, the investors are not well aware of the fact twitters has entirely different business model than these companies. Facebook is considered as a biggest threat to twitter, but despite of all this we overlook the element that Facebook business model and platform is mainly for socializing not for broadcasting and micro blogging like twitter.

Twitter has been continuously putting efforts to grow its user base by making the sign-up process simpler, while also planning of reducing 500 million inactive users from the data base.