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Breakingviews: Twitter's backfire

Thursday, Feb 06, 2014 - 02:55

Feb. 6 - Reynolds Holding and Robert Cyran discuss how the social network's own user-interest metric has suddenly turned against it and rattled investors.

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Twitter results Iran in the micro blogging service seems almost to have shot itself in the foot. Sales were double I think what they were a year ago revenue is supposed to rise. Precipitously. This year and yet something called timeline views which is the company's owned and options. We're down about has really rattled investors syrup what's going on there what the timeline view what is the -- is basically coming ties to put between army times they'd look at the site refresh the senators -- for some. It runs the page -- Why that's a problem -- cousins. Wall Street got these huge hopes for Twitter it's done a company like thirty times cells and you know it's -- -- in the -- but -- the problem is. There are signs that it's not -- -- hate him because I'm. So the people are looking at the number of page user are talent he's actually fell in been going to instantly quarter quarter quarter and suddenly it felt. It's about time suddenly it felt so yet you know and as that means six agencies in the last the other problems that is. Is that mean people are losing interest here doesn't care about it inherently it's probably I mean if the company says this is the best metric for examining how. How it. -- for older users are and it falls that's usually. Actually fell ninety isn't good metric that we know -- we just have to take their word for me to kind of sit there were have been reported its I have a feeling they they use this because there's a flattering metric in the in the run up to the idea. -- whether it's actually indicative of an -- business were not quite sure yeah that preps for more worrying thing is actually growth slowed down a bit it it was only 4% compared to the last quarter and it's been 16% annualized rate. That's not great you know it means to take you know -- a couple -- decades to get to taste right size right -- what's the dynamic between FaceBook and Twitter means Facebook's value was much last yet if you look at pressed for sales -- or what can potentially business today Facebook's about twelve or thirteen times estimated revenue. Twitters is 30% just about almost their accent is even after it fell 20% today. So calm investors. There's an answer investors are still counting on a lot a lot of growth Twitter and it doesn't delivers Stockholm -- well if if people are losing interest in Twitter. Let's say why -- back on what strong their attention. On could be lots of things can and there's spending time FaceBook could be sentenced to Graham could be commuted to Steenland. Do something else and in this Twitter do we have any sense for the Twitter has a plan. You know some -- things up a better -- they say they're working a lot of stuff what that means you know we don't quite at noon. Well sort of surprise there -- disappointment for investigation. You get this up the stock lost 20% and yet they've that's that's an understatement and it will be following that and other stories in the mean time. Stay tuned for more breaking news tomorrow.

Breakingviews: Twitter's backfire

Thursday, Feb 06, 2014 - 02:55

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