I’m a strong believer in Twitter. I use it for the distribution of this blog and consume the majority of my news on the platform. On any given day, I spend an hour or two directly on the Twitter platform and reading articles which I discover on Twitter. I also own Twitter shares and believe that the stock is significantly undervalued.
Twitter announced its Q2 results this week. Basically, while monetization is improving, Twitter’s active user base isn’t growing very fast. As a result, the stock dropped 20% this week.
The reason why Twitter’s active user base is experiencing very slow growth isn’t because Twitter doesn’t have the most current and comprehensive content available anywhere on the web. It does, and this is why I spend so much time using it. The reason for the slow growth is because this content isn’t organized, curated, and delivered to users based on what they’re looking for. It’s delivered as a firehose of information which takes a lot of time to filter to discover the content that you’re interested in. If you spend the time to do so like I do, Twitter becomes irreplaceable. If you don’t, you end up not using it.
What Twitter needs to do is therefore make its best-in-class content more readily accessible to people who don’t want to spend time filtering the content on their own. This requires product developments to organize content, curate it, and deliver it to users based on their areas of interest. As Twitter’s co-founder and interim CEO Jack Dorsey stated during Twitter’s earnings announcement, “You should expect Twitter to be as easy as looking out your window to see what’s happening. You should expect Twitter to show you what’s most meaningful in the world to live it first before anyone else and straight from the source.”
Fortunately, these product developments are already under way. I hope, and believe that they’ll be released successfully. Once an easily accessible product is in place, monetizing the new users is the easy part.