Twitter Inc. (TWTR) Cannot Reach Facebook Inc. (FB)’s and Google Inc. (GOOG)’s Levels: Kirk Patrick

Solid growth of active users in the second-quarter has soothed concerns that Twitter Inc. (NYSE:TWTR)’s future was doomed, according to analysts on Wall Street. The company’s stock soared in Tuesday trading session after the company reported growth on its revenue as well as its active user base. The second-quarter results according to Redpoint Ventures’, Ryan Sarver, in an interview on Bloomberg has eliminated concerns that the user base is small and maturing.

500px-Twitter_Logo_Blue.svg

It goes without saying that the second quarter, according to Mr. Sarver, was one of the best quarters, not only for the company, but also to investors who were hoping the company could register improved user growth, as well as revenue margins.

“I think this is kind of a banner quarter for them and what everyone has been hoping to see; that is incredible growth, incredible engagement, and I think the revenue just continues to really beat everyone’s expectations, so a great quarter overall ” said Mr. Sarver

Bloomberg’s Editor, David Kirkpatrick, on the other hand, maintains reservations on the company’s user growth, which he believes could have done much better in markets where the company had the potential to make more money. Coming up with a product that ensures a constant connection between users while guaranteeing value, remains the best play for Twitter Inc. (NYSE:TWTR), which can ensure further growth of the user base, according Mr. Sarver.

 The World Cup was one of the typical products that brought many people together, sharing all the tit-bits about the event through tweets. The world cup also offered one of the best advertising platforms for Twitter Inc. (NYSE:TWTR). Some of the concerns that Mr. Kirkpatrick raised about Twitter Inc. (NYSE:TWTR) include the minimal amount of time that users in America are using on the platform, as well as the complexity of using the platform as a whole.

International users on the platform also continue to contribute a minimal amount of earnings for the company something that Twitter Inc. (NYSE:TWTR) will have to work on.

“[...] I, myself, still get confused about certain things about it. I think they got an ongoing problem with the product itself and they also have a problem even though they have a lot of users, the amount of time that American users were spending on it is a little bit down. So there is another slight negative. Plus, they also have this huge problem with international users, which earned them way less money per user than they do domestically [...],” said Mr. Kirkpatrick

Kirkpatrick remains pessimistic about the ability of Twitter Inc. (NYSE:TWTR) to attain the amount of growth seen in the likes of Facebook Inc. (NASDAQ:FB) and Google Inc. (NASDAQ:GOOG).


Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!