Twitter Inc (NYSE:TWTR) Failed To Grab New Users Even During the World Cup Season

The shares of Twitter Inc (NYSE:TWTR) went down by 13 percent when the chief executive officer of the company, Dick Costolo, admitted that the company failed to gain new users during the World Cup season. It is pertinent to note here that the company was looking forward to World Cup in order to pocket some new users; however, all its efforts have gone down the drain.

The company, in July 2014, launched its special pilot program; the aim of which was to use the biggest sporting event of the year in order to find more soccer enthusiastic users. However, the CEO, during the third quarter earnings call of the company, disclosed that Twitter has not seen much impact on its MAUs (monthly active users). It is not that the company is not growing; it is growing but just at a very slow pace. The company was able to seize only 13 million users during its third fiscal quarter; out of these numbers, 3 million were from the US.

It is the MAUs of the company that are able to give the stock of an internet company a push; unfortunately for Twitter, MAU figures are not very impressive right now. The company’s recorded MAUs’ growth for its first quarter was 4 percent. As for the second and third quarters, the figures are reported to have reached 6 percent and 4 percent respectively.

It is surprising to note that Twitter Inc (NYSE:TWTR) has seen a decline in its third quarter, despite the fact that World Cup final was on- a type of event that the company believes is its specialty.

Twitter Inc (NYSE:TWTR) has seen no change in its monthly active users in the region of Europe during the world cup season. It fact, the number of users has declined there.

The prospects of the company do not look very promising when its year to year figures are considered. The number of users increased by 23 percent during the third quarter of the year 2014; the figures were recorded to be at 39 percent during the same time period a year ago.

As for now, the growth rate of Twitter is fine. If the company continues to maintain its current pace, it will be an indication of the fact that the changes have worked. If, however, the rate falls below 4 percent, the situation will get a little tense.

The company saw some movement in the Latin American region during the World Cup season. According to the reports, around 0.6 million new users have joined the site in that specific region.

Coming to the stock prices of the company, Twitter Inc (NYSE:TWTR), on the last trading day, October 28, 2014, started its stocks at a price of $42.25 and closed at a price of $43.78. The intraday range for the company’s stocks was recorded to be from $41.76 to $44.58. As far as the market capitalization of Twitter Inc (NYSE:TWTR) is concerned, the figures are recorded to be around $29.88 billion.