Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Twitter Inc (TWTR) Tailoring Services for High Growth Emerging Markets in Search of Revenue Pot of Gold

Twitter Inc (NYSE:TWTR) has a rapidly expanding user base in the Asian Pacific region, one that is poised to continue to become a larger part of the social media company’s overall user base in the coming years. As Rosalind Chin reported today on Bloomberg’s “First Up”, Twitter Inc (NYSE:TWTR) is actively engaged in tailoring their services in these markets in an effort to attract users and build revenue.

twitter twtr facebook fb

“CEO Dick Costolo, in an interview with the Nikkei Asian Review, said he was interested in forming alliances with local companies here (Asia). They’ve already teamed up with a company in India, it’s actually a Swedish company with a huge base in India called Truecaller, and Truecaller basically enables users to tweet back if you’ve missed a call. So this is one of the ways that Twitter is trying to change or tweak its services to local markets, and in that way, trying to increase its user base here,” Chin said.

As Chin reported, the Asia Pacific market is one that is not generating much revenue for Twitter Inc (NYSE:TWTR) at the moment, despite already being their largest in terms of users. Nearly 80% of Twitter users are outside the U.S, with about 40% of those being in the Asia Pacific region. Yet less than 30% of the company’s revenue is generated in those markets. It’s a problem that Facebook Inc (NASDAQ:FB) is also contending with in emerging markets.

Maximizing revenue in Asia Pacific is going to be key to Twitter Inc (NYSE:TWTR)’s growth. While the region is projected to already comprise its largest user base at 32% by the end of this year, as Chin reports, that figure will increase to 40% by 2018 according to eMarketer data. India and Indonesia are projected to be the largest current and future markets from that region, with Japan also set to experience strong user growth.

Twitter Inc (NYSE:TWTR) has tumbled 17.72% this year on concerns over the company’s ability to generate revenue from its service. However strong second quarter results have helped right the decline. It has risen 42.35% over the past three months and 19.54% over the past month. It entered trading today at $52.64.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.