Twitter shares are consecutively plunging, owing to the company’s fourth-quarter loss doubled with reaching lower than 12 per cent of the market share.
The micro-blogging website reported that it faced a loss of $167m (£133m) in the final three months of 2016, as against $90m in the same period a year earlier. As far as the users are concerned, they increased by 4 per cent reaching 319 million but the ad revenue fell down in numbers to $638m. Both the number of users and revenue of the site failed to reach up to the mark of analysts’ expectation.
Twitter’s recent plunge was the lowest quarterly revenue recorded in the history of the company since it began its public functioning in November 2013.
On the other hand, Twitter CEO Jack Dorsey despite of the consecutive losses said that the previous year was “transformative year” for the company.
“We reset and focused on why people use Twitter: it’s the fastest way to see what’s happening and what everyone’s talking about
“We overcame the toughest challenge for any consumer service at scale by reversing declining audience trends and re-accelerating usage.”
While talking about the increase in user base and decrease in revenue, he said:
“While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service.
“This will take time, but we’re moving fast to show results.”