Twitter Loses 2 Million Users As Share Prices Slump
Twitter has had a hard time in the last year, with pressure on the social network increasing as its inability to entice more users becomes a concern.
Twitter’s user growth seems to have peaked at 300 million users and the lack of growth has investors worried as the company continues to operate at a loss.
After revealing that it lost 2 million users in the last quarter of 2015, Twitter’s share price took a sharp dive, falling as much as 12%.
Although share prices recovered slightly afterwards, Twitter is currently trading at about $14.25 per share.
Analysts insist that Twitter is grossly overvalued and is impeded by its inability to become profitable.
Instagram has outstripped Twitter in growth levels as it skipped the 400 million user mark late last year.
Twitter’s response to a lack of growth has been a rash of new features. It has commenced its new algorithm yesterday which will make it a lot more similar to Facebook and it defended its new move by explaining that the aim is to make Twitter easier to use.
Although these are early days, Twitter is showing no signs that it will turn a profit anytime soon and a sale is not too far fetched to consider.