Here’s Why Twitter Should Worry Despite Growth

April, 30, 2014: As the first quarter figures are revealed, Twitter has plenty of reasons to worry.

Twitter reported a net loss of $132 million in the first quarter of 2014 as the company’s stocks plummeted 10 percent. Although the social media giant saw a 119 percent increase in revenue this year and the number of users grew five percent, it was still unable to convince Wall Street to invest.

The first quarter figures are now out and they contain plenty of reasons why Twitter needs to worry despite growth.

Although the number of users has increased to more than 250 million, the user growth rate is disappointingly low and continues to decline each year.  

According to a UPI report, “Despite the social networking flooding Internet, television and billboards with its hashtags inviting people to log on, four out of five Americans with Internet connections still don't use it regularly.”

Another cause of concern is the amount of active users. At the end of the first quarter, users refreshed their Twitter feeds 614 times a month on average. This means users were refreshing their feeds less frequently then they were a year ago.

The prices of Twitter stocks have also been on a descent lately. From a $74 a share peak in December, a month after it went public, the prices have declined to around where they are now, which is $40 a share.

Twitter is taking several measures to increase its user base. These include a Facebook-like layout, changing the format of conversation threads, and personalized recommendation notifications.

However, these efforts are seemingly not yielding the desired results. According to reports, 44 percent of Twitter users have never even issued a single Tweet. Considering the disappointing growth figures, there is still a lot left to be done.

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