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posted by
cmn32480
on Thursday October 29 2015, @09:09AM
from the 140-characters-should-be-enough-for-anybody dept.
from the 140-characters-should-be-enough-for-anybody dept.
Twitter reported a rise in revenue for the three months to September but the pace of growth in active users was the slowest since it joined the stock market in 2013.
Twitter had 320 million average active monthly users, up from 316 million the previous quarter, below investor hopes.
The social networking site reported revenues of $569m, up 58% from $361m during the same period last year.
The company's shares fell 11% after the results announcement.
Revenues up, active users up, shares down.
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Twitter Shares Fall 11% On Results
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In Tulsa, Oklahoma, it is against the law to open a soda bottle without
the supervision of a licensed engineer.
(Score: 2) by jmorris on Friday October 30 2015, @12:06AM
The reason for the investor unease is simple to understand. They suspect they have seen the end of user growth and are looking at the value of the company stabilizing as ad revenue also hits max. Put in perspective, dividing market cap by users gets about $60/user. Even if (a big IF) those were all really active and really real users then you still have to believe that advertising can bring in some reasonable fraction of that value annually to justify the cap. For sponsored tweets and other small potatoes advertising, no. Datamining the crap out of a userbase that large posting pretty much their entire life perhaps, eventually.