Twitter Stock Down: What You Need To Know

I’m a Twitter user so when I heard the stock was down 18% I had to find out why. The stock tumbled 18% after it its 4th quarter results.

Reasons for Twitter stock collapse:

– Active users only increased by 3.8% over previous quarter

– Twitter increase by 9 million users over quarter to 241 million. Year over year Twitter only had a 30% increase in users

– Twitter’s revenue increased 116% year over year to $243 million, but Twitter ended up with a loss of $645 million

– Compared to Facebook’s 1.23 billion Twitter numbers seem low

The consensus is Twitter is doing well, but needs to do a lot better in order to justify its stock price.

Twitter I think will eventually get the numbers Wall Street is looking for. In my opinion Twitter is sometimes the web’s leading search engine. Nothing can beat real time unfiltered search results from around the world. Just look at the Super Bowl 2014 numbers:

(TPM stands for number of tweets per minute)

– 381,605 TPM: @Percy_Harvin 87 yard kickoff return for a TD to open 3rd quarter (8:32pm EST)

– 271,775 TPM: Jermaine Kearse (@chopchop_15) 23-yard TD pass From Russell Wilson (@DangeRussWilson) with 3:11 remaining in 3rd quarter (9:03pm EST)

– 244,889 TPM: Malcolm Smith (@MalcSmitty) 69-yard interception return with 3:36 remaining in 2nd quarter (7:39pm EST)

– 229,533 TPM End of halftime show featuring @BrunoMars and @ChiliPeppers (8:23pm EST)

– 215,540 TPM: Give it Away Now by @ChiliPeppers featuring @BrunoMars (8:18pm EST)

The numbers don’t lie Twitter is on a roll they just need to figure out an advertising system that really works for everybody.