Twitter Inc (NYSE: TWTR)
Twitter has been struggling for quite some time, and for good reason. The company’s core product is a social network, one which they can’t seem to get users interested in. Unfortunately, it doesn’t seem as though things are going to get better for the company any time soon. Today, we’ll talk about why it may be time to abandon this ship!
Tracking Twitter’s Problem Back To The Beginning
For Twitter, their biggest problem started in 2014. Unfortunately, the social network couldn’t seem to get new users involved in what they had to offer. As a result, in early 2015, the CEO of the company, Dick Costolo resigned from his position, leaving Jack Dorsey in his place as interim CEO. From there, a CEO search commenced. However, at this point, TWTR was essentially a sinking ship. In order to save this company, TWTR needed to find a CEO that was known for making exponential changes to tech companies in a positive way. Unfortunately however, no CEO that has built a name for him or herself would be willing to hop aboard a sinking ship and possibly go down with it.
As a result, we found out months after the resignation of Dick Costolo that Jack Dorsey would be taking on the long-term CEO position at the company. From the beginning, I haven’t been a fan of this plan, and as we move forward, it has become clear that Dorsey simply isn’t the man for the job.
Twitter’s Problem Is Not Being Solved
In a recent note to investors, MKM Partners analyst, Rob Sanderson had quite a bit to say about Twitter. Unfortunately, in this note, nothing seemed to be positive. According to the note, there was a recent survey to see how consumers view TWTR. Unfortunately, the survey showed that Twitter’s struggles are far from over. Here’s what we learned from the survey…
- Consumer Awareness – Consumer awareness is not the issue here. According to the note released by Sanderson, 98% of respondents are aware that Twitter exists. They also know how to use the basic functions of the social network.
- User Friendly – This is the big question.. Is Twitter user friendly? According to the recent survey surrounding the social network, the answer is no! In fact, the users that had become inactive stated that they left the network because not only was the content irrelevant to them, the social network was simply hard to use.
While Moments proved to be a good move in the survey, the overall response to TWTR was negative. Essentially, the company needs to do more to make their social network user friendly.
What We Can Expect From TWTR Moving Forward
Moving forward, I’m not expecting to see much by way of positive news from TWTR. Ultimately, for a social network to be successful, it has to drive users into its system. Unfortunately, it doesn’t seem as though Twitter is able to do this. Throughout the year, I would have expected to see many moves that would increase user friendliness. Instead, it’s clear that the company is focused on adding new advertising opportunities. Their lack of focus on the problem at hand means that the problem is going to last for quite a while longer. As a result, there’s no reason to expect to see positivity from the stock moving forward.
What Do You Think?
Where do you think TWTR is headed moving forward? Let us know your opinion in the comments below!