Twitter just isn’t growing

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Twitter didn’t add any monthly active users last quarter.

In fact, it’s beginning to lose them in its home market.

Advertising revenue also declined by 8% compared to this time last year.

Understandably, investors weren’t happy: shares dropped 14%.

It seems like Twitter has lost the “Trump Bump”: more users were active due to the president’s tactical use of Twitter throughout his campaign.

Even though the network has clamped down on abuse and now live streams events, analysts think it’s focussing too much on how to keep existing users active, rather than attracting new ones.

And this corporate strategy should be a concern.

When it debuted on the stock market, investors acknowledged that Twitter wasn’t a profitable company but that it could become one through rapidly increasing its user base and then monetising its services. But it looks like, even with a highly opinionated leader of the free world as an active member, Twitter may just be a niche platform which will not surpass its current size. This growth failure is leaving investors wondering if the firm is overvalued and if current CEO and founder Jack Dorsey is the right person for the job.

Chief rival Facebook meanwhile added 10 million users.

Looking ahead, Twitter hopes that a push into video advertising, supported by partnerships with Bloomberg and sports news providers, will create an advertising-based revenue turnaround. But again, there’s no clear strategy to increase users.

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