Wall Street Responds Negatively to Twitter’s Slow Growth

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Results are lackluster for Twitter’s revamp, despite recent attempts by chief executive Dick Costolo and his management team.

Not only are fewer users interested in the new features, but investors aren’t putting much faith in them either. The social media network’s stock was down 11 percent last week, following reports that there had been slow growth in sign-ups and usage during 2014’s third quarter. 

Lack of innovation? According to Nate Elliott, an analyst at Forrester, the lack of growth is a result of a perceived lack of innovation on Twitter’s part. “The experience on Twitter today is the same experience people have always had on Twitter,” he noted in an article in the New York Times.

Mr. Costolo, however, is determined to continue changes in order to keep and court new daily users.

“We have to continue to grow our monthly active users and making it increasingly a daily use case for them,” he said during a webcast with investors to discuss the financial results, “It’s more critical than ever to increase our overall pace of execution.” During the chat, he emphasized that taking a long view is important.

Different audiences, different experiences. “You want to create scalable experiences that work for all kinds of different users,” he said. Currently, the social media service is trying to reach out to three distinct audiences – daily Twitter users, casual visitors that arrive via web searches and those people who view tweets that are embedded in a news article or app.

In a recent financial report, the company revealed that it has 284 million people logged into the site at least once in a month-long period. That’s up 4.8 percent from 271 million in the second quarter. However, despite this increase they attracted fewer newer users in the third quarter than they did in the first or second quarters. In addition, on average, regular users pulled up their Twitter feeds slightly less frequently than during the previous quarter.

 

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