lead: U.S. financial website The Motley Fool recently wrote that the prospect is not clear, the user growth is slowing, leading to Twitter’s market value has been more than micro-blog. Although the latter also faces some obstacles, but overall, is still a better investment targets than Twitter.
below is the full text of the article:
micro-blog is often referred to as "China’s Twitter", but it is now the company’s value (market capitalization minus the cash held) has been more than Twitter.
micro-blog shares rose nearly two times in the past 12 months, while the same period Twitter shares plunged more than 40%, so the gap between the two will be further expanded in the short term. The theme of this article is: why is Twitter doing so badly, and is "China’s Twitter" worth buying more than Twitter?
micro-blog mobile application interface
Twitter did something wrong?
Twitter is the biggest weakness of user growth. The company’s monthly active users in the first quarter grew by only 3% year on year to reach $317 million, down from the previous quarter of 11%. Revenue growth of only 8%, the slowest since the end of 2013 IPO year on year growth. Analysts expect Twitter revenue growth of only 15% this year, while in 2015 up to $59%.
Most of the new
Twitter ads are not working. Allowing advertisers to buy a specific way to interact (click, reply, forward, or click) can’t appeal to small businesses – which encourages existing customers to spend less money on fewer ads. Summary of the popular tweets and content Moments also failed to attract more advertisers like Snapchat’s Live Stories and Facebook Instagram Stories. Twitter also failed to focus on the company’s Periscope, Vine and Twitter video to create a cohesive video ecosystem, in order to attract more advertisers.
Twitter tried to sell the message once a short-term boost the stock price, but when the potential buyers bid up, the stock quickly and was prodding. Twitter CEO Jack · (Jack Dorsey); Dorsey has also served as a mobile payment company Square CEO, the company has only a part-time CEO led the recovery.
finally, due to the equity incentive spending is too generous, so in accordance with GAAP (GAAP), Twitter is still a substantial loss. And its non-GAAP net profit rose 37% in the previous quarter, reaching $91 million 700 thousand.