Twitter reported their slowest revenue growth since it went public in 2013. Consequently, share prices fell more than 10% on Thursday on market apprehension Facebook, Google, and the upcoming IPO release of Snapchat are controlling the advertising market.
Revenue from advertising dropped from 2015 and a 4% year to year rise was below analysts predictions.
Also, many believed Donald Trump’s frequent use of Twitter would help increase the number of Twitter users on the social media app. However, the fourth quarter earnings report reveals that did not help.
Twitter has struggled to take their social media platform and turn into a growing business. The lack of revenue growth led to the end of the Vine app. Consequently, many financial markets assumed a Twitter sale was on the table, but no one has taken a single bite yet.
Twitter’s CEO Jack Dorsey told analysts on Thursday that Twitter was investing in ways to engage with advertisers.
“It will take time to show the results we all want to see, and we’re moving forward aggressively. The whole world is watching Twitter,” he said.
It is important to note that revenue growth for Twitter is the slowest it has ever been since the company first went public. Revenue for advertising in Twitter’s fourth quarter declined by .5% year-to-year to $638 million. As a result, advertising revenue will struggle to rise until the company can increase users.
Many assumed the Presidential election between Hillary Clinton and Donald Trump would help Twitter since the Trump frequently uses the platform.
The number of Twitter users rose to 319 million, which is less than the 319.6 million Wall Street analysts expect.
Last year, analysts assumed Salesforce.com Inc or Walt Disney Co. would purchase Twitter but, that never came to fruition.
Late last year, Twitter announced they planned on shutting down the Vine app. Vine helped launched the careers of several social media stars who left the app to promote their lifestyles, short videos, and audience on Twitter’s competing social networks including Instagram and YouTube.