Twitter Shares Take A Dive As Revenue Growth Comes To A Halt

Twitter recently suffered a major decline in share price after investors began pulling out following news that the company’s revenue growth has only gone up by 1% over the last quarter.

The news comes courtesy of Forbes, who reported that the shares have ultimately dropped down to $16.67, after coming off a high of $18.71 as the closing share price on Wednesday, February 8th.

The stock tumbled in pre-market trading by 11%, following news that the quarter ending on December 31st, 2016 saw a revenue intake of $717 million, which was only up by 1% over the $710 million from the same period in 2015.

According to Forbes, Twitter will be focusing on live video and aiming to cut out everything else that doesn’t matter, CEO Jack Dorsey stated in the conference call…

“We made tough choices to make sure we can put all of our effort behind Twitter and what has made Twitter great,” “Live video is a big focus of that. We wanted to cut everything that did not matter.”

Twitter COO Anthony Noto also chimed in to further explain that they want to focus on the live video ads you oftentimes see now popping up on the side bars, saying…

“We’re focusing our investments on revenue products that strengthen our unique value proposition, especially in live and video,” “We’re hearing positive feedback from our ad partners about our continued acceleration in audience growth and engagement.”

He mentions “acceleration” in “audience growth” but Forbes rightly points out that audience growth and revenue have “flatlined”.

Twitter has been taking a serious hit in terms of image due to the fact that they’ve made no qualms in waging war against Conservatives by censoring various right-wing pundits on their platform. The most notable form of censorship came in axing outspoken provocateur, Milo Yiannopoulos.

There’s also been the issue of Twitter shadowbanning its users and creating segregated demarcations for people who have different or opposing sociopolitical views. It’s become a hot-bed for explosive topics. But it’s not just offering a platform for those topics, it’s also curating how users engage with them, such as suspending the user accounts for those who outed pedophiles running child porn rings, ultimately protecting child pornographers as #PizzaGate was on the rise as the elections were coming to a head.

Such stark moves also cost them in the long run as far as profit growth is concerned, resulting in some shareholders opting to sue Twitter for lying about the performance of the company.

Unfortunately, Twitter has a noise problem and that doesn’t seem to be going away. They’ve implemented new emergent discovery features to bring the noise even closer to you than ever before by showing “moments” and top tweets from social media motivators. The problem is that oftentimes a lot of it is politically charged and divisive, either from the left or the right. Facebook also had a similar problem and decided to replace the humans in charge of trends with algorithms.

Dorsey and the gang are hoping that features like embedded periscope and live video from major corporate networks will help elevate their revenue throughout 2017. However, continuing to segregate users through shadowbans and encouraging interactions through divisive topics seems like an opposite approach to endearing new users to the platform.

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Billy has been rustling Jimmies for years covering video games, technology and digital trends within the electronics entertainment space. The GJP cried and their tears became his milkshake. Need to get in touch? Try the Contact Page.

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