Twitter is the world’s third biggest social network. Although, the Twitter net worth suggests that its days are numbered.
Since Twitter launched in 2006, the platform has achieved incredible growth. Twitter now has more than 1.3 billion accounts. Its users send more than 500 million tweets per day.
On the surface, it appears that Twitter is thriving.
Yet, that might not be the case. 750 million of those 1.3 billion accounts have never sent a tweet, while 8.5% of Twitter’s active users are actually automated bots. Likewise, while the user base grew rapidly between 2010 and 2015, the number of people signing up to the website has since tailed off.
Twitter recorded losses of more than $2 billion since 2013 and revenue growth has stalled. Investors are beginning to doubt the platform’s ability to improve their situation.
As a result, Twitter has lost almost 75% of its value since it reached its peak of $40 billion in 2013.
Site founder and CEO Jack Dorsey insisted that Twitter has a future, but how can he turn the struggling social media platform around?
Improve user safety
The anonymity available online makes the internet a breeding ground for harassment and abuse from users commonly referred to as ‘trolls’.
These characters are present on all social media websites. However, as it is considerably easier to contact somebody without their permission on Twitter, the website has struggled to control these situations.
Twitter added a new feature to mute ‘anonymous’ (those without a profile picture or confirmed email address) users. However, they need to do a lot more to make their users feel safe.
Generate revenue
Twitter has never been profitable. However, a $79 million loss in 2012 turned into a $645 million loss in 2013. Their situation hasn’t improved since.
The problem is the platform’s struggle to generate revenue. The website made $2.53 billion in 2016, but that is much less than Facebook manages to generate per user. Likewise, advertisers are now more likely to turn to Instagram in search of new customers.
88% of their revenue comes from adverts displayed on timelines. However, as user growth stagnates, so has their revenue growth. Twitter must find alternative revenue streams if they are to start turning a profit.
Stabilise the leadership team
Twitter suffered a disastrous year in 2016, as six of their 10 executives quit the company. The high level of staff turnover in the senior positions has led to concerns about the company’s ability to set goals and stick to them. New faces are coming in and Twitter’s direction is constantly changing.
While Jack Dorsey has been reinstated as CEO, there are still concerns about his ability to lead. Likewise, as CEO of mobile payments company Square, Inc., Dorsey will be splitting his time between the two projects.
Twitter net worth: How bad is it?
The Twitter net worth stood at more than $40 billion in 2013. However, as interest in the social media platform falls, Twitter’s market cap now stands at just $13.7 billion.
While Twitter remains the second biggest social media platform, its value is lower than the likes of Instagram and Snapchat.
17 best Jack Dorsey quotes that will honestly change the way you work