Twitter Inc (NYSE:TWTR) Facing a Wall of Losses

Twitter Inc (NYSE:TWTR) has had a rough run at the stock market, which instigated since the start of this year. The shares have fallen 30 percent since January. Twitter Inc (NYSE:TWTR)’s third quarter earnings also came out extremely lackluster; now investors are worried whether it’s an indefinite decline or a temporary low hit. Twitter Inc (NYSE:TWTR)’s revenue came out fine in the third quarter however.

A surge of 114 percent was observed leading to 361 million dollars and Twitter Inc (NYSE:TWTR) also raised its outlook for next year’s full year revenue and earnings. Twitter Inc (NYSE:TWTR) came out short on its guidance in the current quarter however. Another worrying factor for Twitter Inc (NYSE:TWTR) is achieving the steady growth of its users. This quarter saw user growth surge by 5 percent, which is unfortunately, an indicator of the things to come.

It’s likely the rate of users joining or engaging on Twitter Inc (NYSE:TWTR) will further decrease with time. The timeline viewing has also decreased, which has led analysts to claim that Twitter Inc (NYSE:TWTR) will witness a stock price recession in the coming days. The analyst’s view is already being taken into consideration by buyers, as Twitter Inc (NYSE:TWTR)’s stock price dropped by 10 percent before closing of the market.

Advertising might just be the saving grace for Twitter Inc (NYSE:TWTR). Advertising money coming from per thousand timeline views leapt by 83 percent. Twitter Inc (NYSE:TWTR) is playing its cards right when it comes to advertising; it is giving the advertisers a safe and formidable platform to advertise their products on Twitter Inc (NYSE:TWTR)’s behalf (at a hefty sum). This also means that the audience is answering to the ads.

This is resulting in large money for both Twitter Inc (NYSE:TWTR) and the advertiser as Twitter Inc (NYSE:TWTR) is getting more demands from advertisers to equip more inventories to glorify the website and provide a quality user experience as well along with ad increase. Twitter Inc’s (NYSE:TWTR) CEO addressed this issue, citing a concern that a dramatic raise in the ads would be too greedy and too unsavory.

However the company wishes to add up more advertisements, roping in lucrative advertisers to display their product on Twitter Inc (NYSE:TWTR)’s turf. This means that in the future we can expect Twitter (NYSE:TWTR) to embrace the desires of the eager advertisers, and the prospect of large profit in the business, but not however lowering the user experience. Analysts still believe that Twitter Inc (NYSE:TWTR) remains a formidable stock with great potential for growth.

Investors might buy the stock simply to hold on to it, which can be a safe and healthy strategy. Investors are interested in companies that are capable of being forward looking in terms of the stock value, and Twitter (NYSE:TWTR) is definitely an integral part of the internet world. The investors who are bailing out are perhaps afraid of the turbulent stock price behavior of Twitter (NYSE:TWTR) but Twitter (NYSE:TWTR) is surely capable of evolution in the social media.

Twitter’s (NYSE:TWTR) management needs to give its investors some hope, or something more practical so that they may hold on to their shares and stay put for the tables to turn in Twitter (NYSE:TWTR)’s favour all in due time.