On November 14th news, according to the Wall Street Journal reported that if you and 73% of American adults, landing Twitter frequency is less than once in January, you are likely to be Twitter as a presidential candidate for the brightest star, called find uncomfortable place.
Twitter for a long time did not give the company a suitable definition, which also caused the company's recent growth slowed. Content, exhibition, humor, self promotion and abuse in the mix, make their own products, Twitter team leader and investor also puzzled.
Twitter is also in the rapid development of streaming media content, NBA, NFL, from Wimbledon to presidential debate without involving. The company is announced and Inc. BuzzFeed cooperation, the U.S. presidential election in the form of streaming media. After the implementation of these initiatives, Twitter looks more like Disney, Communications Inc. Verizon or Inc. Netflix such companies.
But in the past 15 months, the monthly number of active users of Twitter growth slowed sharply in the first quarter of 2015, Twitter monthly active users to 302 million, the second quarter of this year the figure will only increase to 313 million. The same stage of Facebook's monthly active users increased by 271 million, the total number has reached 1 billion 710 million, the growth of just that part of the total number of active users and Twitter flat.
Twitter's revenue is still growing, the last quarter compared to the same period last year, an increase of 20%, but this is the smallest increase since the Twitter 2013 listing. The number of users is stagnant, Twitter is now the biggest hope is that the introduction of more and better advertising products, from the existing users who generate additional income.
For now, Twitter is still not profitable, which is largely because Twitter promises to provide employees with too many stock incentives to avoid staff job hopping to other companies. In the past 12 months, only this part of the stock incentive spending accounted for revenues of Twitter 26%, the data ranked second in all 1 billion of the annual revenues of technology companies, after the Palo Alto Networks Inc.
Employee compensation can be said to be a major core issue of Twitter. In Silicon Valley, the competition for top talent is very fierce, they tend to be able to create a breakthrough product, so huge stock awards are also very common. However, for media companies, such a move would not have any significance, because in the media between the company, the mobility of the top talent is very strong.
Most investors have now seen Twitter as a mix of media companies and technology companies. No profit, Twitter has been unable to and the price earnings ratio of the company in the same breath.
After Friday's stock fell, the market value of Twitter is about 4.3 times in the past December revenue. Media companies in the Disney's share price to revenue ratio of 2.6, Corp. Comcast is 2.1, the New York Times is 1.2, news group is slightly less than 1. Science and technology company's share price is often higher than the revenue, Alphabet's share price is 6.7, Facebook is as high as 16.7.
If investors use Twitter as a pure media company, then Twitter's share price is likely to be cut.
AOL, YAHOO and Twitter are also very interesting contrast. At a certain stage of development, the companies have ceased to be innovative, and become the main content of the company's business.