Twitter Inc. (TWTR) Tepid Growth a Point of Concern

Twitter Inc. (NYSE:TWTR)’s main concern since the start of the year has been its tepid growth in user subscriptions’ which has been overshadowed with growth metrics of its  fierce rival, Facebook Inc. (NASDAQ:FB). Twitter is reportedly unveiling new metrics for analyzing its growth statistics, which according to Melissa Lee on CNBC is just another way of trying to justify their relevance in the market since the older ways are not working.

“They are unveiling new metrics it seems, call me a skeptic, but it seems to-me they are coming up with new ways to measure their relevance because the old ways are not showing growth anymore,” said Lee. Twitter Inc. (NYSE:TWTR) is trying to push for the eCommerce offerings as the company continues to test a ‘Buy Button’ that will allow users to buy goods without having to leave their core app

Founder and president of Endpoint technologies, Roger Kay, also echoed Lee sentiments on twitter’s subscribership growth being tepid taking into consideration they are only a quarter of the size of Facebook Inc. (NASDAQ:FB). The positive to take forward according to Kay is the fact that Twitter Inc. (NYSE:TWTR) has started to monetize its operations by adding things like the buy button as well as other ways of making money.

“They are increasing their ability to monetize and are adding things like the buy button this week and other ways to make money and so on. I think you are going to see a higher proportion of revenue per subscriber but that subscription growth is troubling to some people” said Mr. Kay.

Despite being overshadowed by Facebook Inc. (NASDAQ:FB) in terms of the sheer size, Kay believes that Twitter Inc. (NYSE:TWTR) is uniquely mobile with the great opportunities of attracting the young-generation style communication that should be of great benefit going forward. Twitter Inc. (NYSE:TWTR) has in the recent past found alternative usage with some authors publishing novels in the form of tweets highlighting that the platform still commands a higher level of innovation  although it has not grown as fast as many people would have liked.

Disclosure: none