Twitter Takes Hit As User Growth Disappoints
Twitter has fast become engrained in popular culture but must still convince investors of its business model, which relies on user growth and celebrity reach.
Via AFP:
Twitter got a reality check as the high-flying messaging company reported modest user growth during a quarter in which it lost $511 million.
Even more disconcerting, in the eyes of some industry watchers, was that the typical amount of time people spent checking out timelines actually dropped.
"If you don't have an engaged user base, you don't have a business," Forrester analyst Nate Elliott told AFP.
"They have got to do better on users, that is the entire story."
Twitter makes money from ads in the form of "promoted tweets" in timelines, and it needs strong growth to keep its m...