Has Twitter plateaued?

Although it may be one of our favorite social media platforms, Twitter has reached a plateau.  One of the most popular forms of social media has announced its numbers, and they aren’t pretty in the eyes of investors.  Twitter’s stagnant user growth is a bit of concern since the company went public only a few months ago.  In the last month only one million users signed up (only…). But in terms of other social media sites that might as well be nothing.

Just after this announcement was released, a stock analyst changed Twitter’s rating from “neutral” to “underperform,” ouch… This is bad news for advertisers who need a constant flow of new eyeballs on their products and who rely on Twitter to bring results.

Even after these ratings, I don’t think Twitter is anywhere close to being on the outs.  Stagnant doesn’t necessarily mean hurting.  Maybe Twitter needs to work on marketing to new users but the strong relationship it has built with its existing users is enough to keep Twitter at the top of its game.  How many millions of users are already actively using Twitter? I think  to make these analyses more accurate the research should be conducted based on active users versus one time sign-ups.  Marketers have nothing to worry about if those one million users that registered in the last month are about to become Twitter’s biggest fans.  It all depends on how often users view their feeds rather than how many have profiles.

Investors will have to keep watch over Twitter’s growth in the next quarter but it’s unlikely that the company will continue to decline after so much success.


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