Is Twitter Inc (NYSE:TWTR) The Next MySpace?

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By Thomas Copeland on January 6, 2015 Social Media

When founded in 2006 by a group of highly enthusiastic individuals, it was reported that the next big thing in the world of social networking has arrived. The reason for the initial success of Twitter Inc (NYSE:TWTR) was its simplicity and easy to use interface. In fact the social media networking website was so easy that all the celebrities across the globe decided to make an account on it for easy interaction with fans and press.

Unfortunately, despite a great start to the company, 8 years down the line things are not looking good for Twitter Inc (NYSE:TWTR) as the company is facing a steady decline due to a number of factors. The top factor is that the competition for Twitter Inc (NYSE:TWTR) has increased and now it is struggling to attract new users. As a result, the Monthly Active User (MAU) growth has been witnessing a steady drop. People it seems are no longer fond of restricting their ideas and views of only 140 characters. People want to fully express themselves and Twitter Inc (NYSE:TWTR) is failing to give them this opportunity.

The biggest threat to Twitter Inc (NYSE:TWTR) is the increasing popularity of a photo sharing app known as Instagram. Unlike Twitter Inc (NYSE:TWTR), the users of Instagram can write as many characters as they want along with their picture. Instagram which was purchased by Facebook Inc. (NASDAQ:FB) for only $715 million is now giving Twitter Inc (NYSE:TWTR) a run for its money. To make matters worse, Snap Chat has entered in to the market and is attracting a number of users and soon it might surpass the MAU of Twitter Inc (NYSE:TWTR).

Twitter Inc (NYSE:TWTR) is also haunted by the decisions of its CEO, “Mr. Dick Costolo”. A number of shareholders and investors have demanded the resignation of the CEO. In fact during the past year, a number of employees also left as a protest over the decision making capability of the CEO. Twitter Inc (NYSE:TWTR), which maintains a good cash in hand is suffering and in every quarter the income is less than the expense and making the company to pass during a tough time.

Twitter Inc (NYSE:TWTR) needs to learn from its mistakes and should rectify them immediately. Once Twitter Inc (NYSE:TWTR) was considered to be the ideal substitute of Facebook Inc. (NASDAQ:FB), but unfortunately today it is being defeated by a sub app of Facebook Inc. (NASDAQ:FB).

This is a time for some extreme decisions to turn the fortune of the company. The website that was once so easy to use and due to its quality privacy settings provided a lot of confidence to its clients is now being dubbed as a boring activity. Unless something soon is done by Twitter Inc (NYSE:TWTR) like firing its CEO, things will not get better. The share prices will keep on decreasing and the investors’ confidence will continue to shackle.

But Twitter Inc (NYSE:TWTR) is still not taking any actions and if it continues, the company might have to face the same fate as My Space.