Facebook and Twitter are the two social network par excellence. Collide on the same playing field with two different approaches although some innovations of the last few hours have a little 'brought together them. However, if one part Facebook presents solid quarters and can afford Pharaonic acquisitions, other Twitter has no results so prosperous report. The company has announced its first quarter without growth since the IPO, and there are doubts concerning the ability to reverse the trend.
The news comes in a merciless just following some measures taken to modernize the service and make it more palatable to a wider audience. Despite the latest news, the company also announced that it is not expected growth in the immediate results: "Our path needs time", said the Executive Chairman Omid Kordestani within the usual call to analysts. It takes time, in other words, because the company is able to monetize the latest choices.
The uncertain future of Twitter and the turnover forecast for the current quarter below expectations caused a rapid decline in the stock value of the company in after-hours trading. The value in the New York Stock Exchange fell 2.5% on completion of the call and, though it has since risen a few percentage points, total is down by more than 50% by the return of Jack Dorsey in the company. Randy Guisto, vice president and lead analyst at Outsell, commented: "The global growth of the platform is disappointing."
"Twitter has stabilized and can not look to India or China as these markets are already dominated by other platforms." The turnover for the first quarter of 2016 is between 595 and 610 million, well below analysts' estimates (about 630 million dollars). More importantly, even the customer base can grow: they are 320 million monthly active users on Twitter, below forecasts and substantially aligned with the results of the last few months.
Jack Dorsey is back in the company as interim CEO last July, becoming CEO in October. The goal of his return is to be able to make the portal more attractive from the point of view of advertisers, with the change on Wednesday that the decision represents the most drastic since his return. With a timeline no longer in chronological order, Twitter will lean on the side of its advertising, with professionals who can put their ads featured in the top positions.
It will not be won without a clear answer to the problem of zero growth of the customer base, with people themselves who have indeed received the news of the last hours with the hashtag #RIPTwitter. Certainly not the most promising for the microblogging platform Dorsey.
The news comes in a merciless just following some measures taken to modernize the service and make it more palatable to a wider audience. Despite the latest news, the company also announced that it is not expected growth in the immediate results: "Our path needs time", said the Executive Chairman Omid Kordestani within the usual call to analysts. It takes time, in other words, because the company is able to monetize the latest choices.
The uncertain future of Twitter and the turnover forecast for the current quarter below expectations caused a rapid decline in the stock value of the company in after-hours trading. The value in the New York Stock Exchange fell 2.5% on completion of the call and, though it has since risen a few percentage points, total is down by more than 50% by the return of Jack Dorsey in the company. Randy Guisto, vice president and lead analyst at Outsell, commented: "The global growth of the platform is disappointing."
"Twitter has stabilized and can not look to India or China as these markets are already dominated by other platforms." The turnover for the first quarter of 2016 is between 595 and 610 million, well below analysts' estimates (about 630 million dollars). More importantly, even the customer base can grow: they are 320 million monthly active users on Twitter, below forecasts and substantially aligned with the results of the last few months.
Jack Dorsey is back in the company as interim CEO last July, becoming CEO in October. The goal of his return is to be able to make the portal more attractive from the point of view of advertisers, with the change on Wednesday that the decision represents the most drastic since his return. With a timeline no longer in chronological order, Twitter will lean on the side of its advertising, with professionals who can put their ads featured in the top positions.
It will not be won without a clear answer to the problem of zero growth of the customer base, with people themselves who have indeed received the news of the last hours with the hashtag #RIPTwitter. Certainly not the most promising for the microblogging platform Dorsey.
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