Twitter Inc (NYSE:TWTR) Getting Its Act Together

Posted by Kristi Scott December 17, 2013 0 Comment 729 views

Ever since Twitter Inc (NYSE:TWTR) went public in early November, the executives at the micro blogging site have been extending themselves to demonstrate that they are focused on increasing their revenue streams. It is in this context that one needs to analyze the latest announcement from Twitter Inc (NYSE:TWTR) that its recent revamp in its advertisement platforms have resulted in the company managing to set up additional cash flow generating options.

Survey Points To Improvement

This improvement in the attractiveness of Twitter Inc (NYSE:TWTR)  offering to paying advertisers becomes explicit when one considers the findings from RBC conducted a survey in association with Ad Age. As per the survey findings, Twitter Inc (NYSE:TWTR) has managed to drive a 40 percent increase in ad spend from its existing advertising clients. This is substantiated by a 40 percent increase that clients have seen in the ROI they are deriving after investing in Twitter driven advertisements. The survey also reported that a majority 59 percent of the responding clients of Twitter Inc (NYSE:TWTR) were willing to increase their ad spend on the micro blogging sites advertisement platform.

Stock Market Disagrees

It’s a different story that in spite of these consistent efforts on part of Twitter Inc (NYSE:TWTR) management the analyst community still come across being unimpressed with the company’s efforts to turn round the corner and start posting profits in the near term. Readers should note that in spite of starting operations seven years back the micro blogging site which had ballooned into a $30 billion market capped firm has struggled to complete on full quarter with profits. In fact over the trailing 12 months it has posted net loss of $142 million. These concerns have led to a host of analysts downgrading the stock over the past couple of days leading to a big exodus of investors from the stock. This has resulted in a huge 4.05 percent dip in its market value over during trading yesterday.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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