„The whole world is watching Twitter“, but profits are farther than ever
Twitter’s CEO Jack Dorsey recently said that the whole world is watching the platform. And he’s right. With Donald Trump being followed by probably every news station around the world and supporters and enemies alike flocking to Twitter, the company is adding users. But that’s not translating into money – it never has. And maybe it just can’t at this point.
In the era which will probably go down in history as “before Trump”, Twitter was stagnating as far user growth was concerned. Over the last three months, it has added 2.6 million monthly active users, which bring up the total amount to 319 million.
Twitter is gaining a lot of attention, that’s undeniable. But it’s also losing a lot of money. In the fourth quarter of 2016, the company had a net loss of 167 million dollars – larger than every single other quarter in the year by at least 60 million and also almost 80 million more than what it lost in the same period of time last year. Yes, the company is growing, but so are the costs associated with it. Many are calling out for changes at the core product and that is part of what is costing the company so much – it is spending money looking for viable strategies. But is there still one?
If your company has grown to the point of Twitter, being one of the most popular social networks of our time, there might be little chance of turning back. You have over 300 million active users, they are there for a reason. Every change might chase away more people than it attracts. People are the only currency Twitter has – and every strategy to make it profitable might hurt that currency. It’s easy to say “start making money”. But as Twitter shows, even for the biggest companies, it’s not as simple as that.
Pic: © edar
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