Twitter is huge. In fact, at the end of last year, the platform boasted over 319 million active users. No small feat by any means.
Now, user growth has grown during the first quarter of this year but it seems that its stock remains a risky bet for long-term investors.
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According to a recent report from Aegis Capital analyst Victor Anthony, Twitter’s road to success is getting narrower by the day as it fends off growing competition from Facebook (FB) Alphabet (GOOG, GOOGL), as well as Snap (SNAP).
Twitter’s growth struggles are well-known among investors, but Aegis' user growth checks suggest Twitter will report incrementally positive user growth in the quarter just gone.
A Twitter spokesperson explained his thoughts on the situation by stating that this spike in user growth offers 'a glimmer of hope' but is 'not significant enough to warrant a shift back in ad spend by advertisers.'
Twitter stock has dwindled 64% over the past 36 months and is trading at near all-time lows. Despite the sell-off, experts are saying is still far from a bargain.
Twitter's current issues look as if they stem from investors getting a better return on investment from advertising on other competing social platforms, leaving them in the dust somewhat. As a result, Twitter has been losing market share to its competitors, a trend that Aegis expects will continue into 2017, and possibly beyond.
A recent study suggests that Twitter's popularity among teens has plummeted over the last two years, falling from 21% in 2015 to only 11% in 2017.
What is making the teens tick? Snapchat, 39% and Facebook-owned Instagram, 23%, remain the kings of the social media world among teens, or Gen Z'ers.
So, if you're looking to invest in social media this year, Snapchat, Instagram, and the above tips look as if they are your best bet.
Until Twitter can demonstrate its relevance in today's and indeed tomorrow's social world, it's stock may continue to take a nosedive. But, all is not lost - those behind the platform are sure to be working on innovations that will drive the platform forward into a bright and prosperous future.