Twitter’s Last Stand

This social media giant is facing some severe problems

Twitters+Last+Stand

Zack, Writer

Social media giants have thrived on the countless users and revenue that bless them each day for years now, with Facebook having gained just over 2 billion users as of this year. But one significant player in this expansive market, Twitter, has been facing some noticeable issues, and many predict that the globally-recognized social media brand could be out of business by 2020.

As of November 2017, Twitter’s market capitalization is $14.62 billion. Since 2015, the social media company’s market cap has been in not-so-steady decline. In that year alone, they had an estimated cap of $22.75 billion, with a noticeable decline all the way through, according to Macro Trends. In addition, Twitter’s market cap was surpassed by multiple companies previously thought to be nowhere near its reach, as of March 2017. Market Watch conducted a data chart on the topic, and some of these companies include Motorola, Snap, and Hershey. As of now, Twitter stock is also dropping, presenting sizable opportunities for investors but a bad outlook for the brand itself.

That’s not all; Twitter is having a difficult time keeping up with its user base. As of 2017’s third quarter, the social media giant has amassed about 330 million monthly active users, according to Statista. The company’s CEO, Dick Costolo, has been criticized for not handling various problems well, specifically in relation to the user base. Money Morning’s chief investment strategist, Keith Fitz-Gerald, is quoted as saying, “Naturally, [Costolo’s] come under fire for the sluggish user growth, monetization struggles, shuffling of management, and the head-scratching sin of selling Twitter stock even after it had already fallen by 17% following a dismal earnings report.”

While Twitter remains one of the hugest components of the social media space, its future is bleak. With the right decisions, they might be able to turn things around for the better, but for now, only time will determine what happens to the global brand by 2020.

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