Analytical Report By Business Insider Puts Question Mark On Pace Of Twitter Inc (NYSE:TWTR) User Growth


Dallas, Texas 07/17/2014 (FINANCIALSTRENDS) – An analytical report dated 17th July appearing in Business Insider raises questions on micro blogging site Twitter Inc (NYSE:TWTR) ability to continue to grow its active user base. The report put together based on data that was sourced from the micro blogging site’s “data firehose” claims that the executives of the San Francisco based social media firm were saved from blushes during the 2Q of 2014, only by the sudden spike in user activity worldwide, largely driven by users logging on to Twitter during the just concluded FIFA world cup in Brazil.

Data Tracks Users over Past Three Quarters

The report goes on to look at monthly active user’s data released by Twitter Inc (NYSE:TWTR) for its previous quarter operations to conclude that the growth in active users has dipping. The monthly active user data for 1Q14 as per the micro blogging management had averaged 225 million, which when compared to 1Q13 shows a healthy 25 percent increase. But Business Insider analysis points out that in the 4Q13, which was the “immediate prior quarter” Twitter Inc (NYSE:TWTR) had registered 241 million monthly active users and on a sequential quarter on quarter compare, the user base had grown only by 6 percent.

Caution Advised

The Business Insider goes on to quote its sources to estimate that Twitter Inc (NYSE:TWTR) is likely to register 260 million monthly active user’s for its 2Q. If this transpires, it would translate into a meagre 2 percent quarter-over-quarter increase.

Industry watchers were quick to advise caution with regards to the report, by pointing out that, the data based on which the report was put together is sourced from “third-party software developers who have access to Twitter’s application programming interface” and is not validated by Twitter Inc (NYSE:TWTR). They advise investors to wait till the micro blogging site files an SEC update with latest monthly active users before taking a call.

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