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 Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!