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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

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!