Twitter (NYSE:TWTR) Desperate for a Rapid Growth Cycle


Analyst days aren’t usually taken seriously because they are quite frequent and standard for public companies. Companies, on analyst days, answers questions brewing up about them and engage in media activities. For Twitter (NYSE:TWTR), analyst day was more than that. Twitter (NYSE:TWTR) became a public company last November, and since then, its stock surged up by 50 percent. But Twitter (NYSE:TWTR) hasn’t managed to get rid of significant problems like slow growth, management issues and user engagement problems.

Twitter (NYSE:TWTR) opened the big day with a presentation by the CEO, who addressed mounting issues in the field of social media. He also embraced the significance of video in social media, and accepted the fact that video is the foremost driver when it comes to advertising. Twitter (NYSE:TWTR) pointed out Facebook (NASDAQ:FB)’s success, which is largely driven by video hosting. Twitter (NYSE:TWTR) will be incorporating video hosting on a larger scale. This came as good news for analysts and users who’ve been waiting for Twitter (NYSE:TWTR) to upgrade.

Twitter (NYSE:TWTR) will also be making things convenient for its new users by reducing the element of complication regarding the outlook of the website. The company’s CEO addressed the situation, stating that the company will work on reducing the barriers by providing easy-to-operate instant timelines for relatively new and old users in order to enhance user engagement.

There were questions regarding Twitter (NYSE:TWTR)’s slow growth, but CEO pointed out that Twitter (NYSE:TWTR) is now holding 284 million users and the numbers are growing each day. Though, it will take some time to topple the Facebook (NASDAQ:FB), it’s still an optimistic sign. Twitter (NYSE:TWTR) also sketched out a plan extending to 2024, which pointed out the journey of Twitter (NYSE:TWTR) in becoming the largest social network by revenue.

Twitter (NYSE:TWTR)’s growth cycle improved by 24 percent in the third quarter period. It isn’t outrageously impressive, nor is it near to Facebook (NASDAQ:FB)’s growth or too large to eliminate the doubts of the analysts. But given the fact that Twitter (NYSE:TWTR)  will change the whole outlook of the website, making it more convenient and incorporating video on a larger scale, there are bright chances that Twitter (NYSE:TWTR)’s growth cycle will enhance rapidly.

When it comes to user engagement, Twitter (NYSE:TWTR) is already making big money on the logged out users visiting the website. Twitter (NYSE:TWTR)’s problem lies in how frequently users use the social network. If the users use Twitter (NYSE:TWTR) once a month then blogging site has a problem. Its growth cycle will remain slow, which will be consequential to its stock price.

Twitter (NYSE:TWTR) needs to learn a lesson from Facebook (NASDAQ:FB), which has incorporated so much on its website that instantly draws users and gets hooked for hours at end. Twitter (NYSE:TWTR) needs to create that sort of aura, yet be distinctive. The company is working on its mobile devices and it is hoped that Twitter (NYSE:TWTR) will capitalize on the surge in its stock price and give something more to its users.