Back in 2013, during Twitter’s IPO offering, it was a $40 billion company. Now its valuation is 25% of that amount, that is, just $10 billion. Now, in isolation, $10 billion is not a small amount, but even a relatively newcomer Uber has a valuation more than $60 billion. Even Pinterest is valued at $11 billion and Snapchat at $15 billion.
What went wrong with Twitter?
Investors simply don’t see any growth in the social networking platform. Although it is one of the major social networking platforms in the world and in terms of social interaction it might be competing with Facebook (the big daddy of all social networking platforms up till now) the acquisition of new users has been a lackluster affair. Growth simply isn’t happening. Twitter’s count of monthly active users during the last quarter has hovered around 307 million, just a 5-million growth since Q1. With the sort of numbers usually the Internet companies have, this is being considered a very slow growth or rather, a declining growth.
The new CEO of Twitter Jack Dorsey is gung ho about Twitter’s future – “Twitter’s here to stay! By being more Twitter-y!” – but the public markets don’t share the enthusiasm, according to this Wired update.
Ever since his arrival, Jack Dorsey has been incorporating newer changes, whether big or small. Changing the Favourite Star to a “Heart” wouldn’t be called a big change if you aren’t bothered much by the aesthetic factor, but lifting the limit on the size of direct messages is definitely a big change and also the topic focused Twitter Moments. He has also been contemplating changing the chronology of the timeline but the #RIPTwitter hashtag in protest forced the company to retreat its step.
There have been other controversies also, with top four Twitter executives suddenly leaving the company.
Twitter is a great platform and it is one of the pioneers of the social networking movement on the Internet, but when it comes to making money, the people in the company haven’t been able to figure out how to do that. Besides, for the first-time users it’s always difficult to get into the groove. I remember when I started using Twitter for the first time, I couldn’t make sense of what was happening – what was the use of posting all these messages and who were the people who were reading those messages and then responding to them?
On Facebook this is straightforward. You don’t have to figure out things on Facebook. As soon as you open a new account, you can easily know what people are doing. On Twitter, it can be intimidating especially when you are not self-motivated.
A big reason behind the success of every online platform is that people don’t need to figure things out and still they are happy about using the platform. On Twitter, people have to figure things out and that’s a deterrent.