twitter tops

Twitter IPO was probably one of the most talked about initial public offerings from the technology sector last year. The company went public rather smoothly last year and didn’t face issues that Facebook did at the time it went public. The company has announced its Q4 2013 results and even though it reported better than expected revenues of $243 million, investors have been disappointed by slow user growth and this has had a direct impact on the Twitter stock.

Twitter is the second largest online social network behind Facebook, which was over a billion active monthly users. In order to give the world’s largest social network truly a run for its money, Twitter needs a lot more users to sign up for the microblogging service. Investors apparently aren’t convinced about the existing rate of growth, with Twitter averaging 241 million monthly users in December 2013, a nominal 3.8 percent increase from the quarter before that. This actually happens to be the lowest rate of increase ever since Twitter started announcing these stats. As a result, Twitter stock price is almost down 25 percent, eroding $9.8 billion from its market value. On the other hand, CEO Dick Costolo is hopeful that 2014 will increase stats as users get adapted to the new user interface and take to a new onboarding process for newcomers to get used to its mobile applications.

Filed in Web . Tags: Twitter. Source: reuters
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