Tech

Twitter Faces More Crisis, Is It Still Profitable?

By Jiran , Oct 11, 2016 04:08 AM EDT
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Twitter has been losing its worth by the day. The social networking company's stock has fallen again last Monday by 12 percent. This might affect Twitter's chance of being bought by other big companies. It still doesn't seem to figure a way to increase their revenue.

Should Google's Alphabet Inc., Walt Disney Co., and Salesforce still buy Twitter? Is it still profitable?

Prospective Buyers Back Out

The Wall Street Journal has reported Twitter's possible fate among its prospective buyers. According to close sources, Salesforce may still be interested in buying Twitter. This is despite the recent news of its shares crashing down. But such sale is possible once Twitter is worth a lot less.

A different source has already said last week that Google will not make a bid. This is also the case with Disney. Twitter may end up to fend for itself. According to The Wall Street Journal, it all depends on the company's stock.

Unsurprisingly, the talk about a possible sale had been beneficial. Its share went up to about 33 percent last week.

Twitter has to find another strategy to save itself from continuous stock decline. This is unless one of those above mentioned companies thinks $12 billion is worth it.

Twitter's Loss In Revenue

The loss in revenue for the past years is not evident on its 310 million monthly active users. The company should have made used of that large number.

According to the Los Angeles Times, Twitter has lost a whopping $521 million in 2015. The company's revenue was at $2.22 billion. Though Twitter has pointed out that they had a net income of $277 million.

A Way Out In Live Video Strategy?

According to Bloomberg, a buyer is not the only option for Twitter. The company has thought of a new strategy as their possible last ditch effort. Twitter can now only hope that the live video strategy will work out.

This seems to be a good idea for the tech company. It actually looks like Twitter is hitting two birds with one stone. In order to save Twitter, the company has to both gain more users and increase their revenue. The live video strategy might be able to resolve this.

Bloomberg further reports that Twitter has been trying to partner with sports, political and entertainment organizations. Twitter is targeting users who are browsing contents from these websites.

For instance, a person will not only stream National Football League's games. The partnership will enable Twitter to display tweets alongside the video.

Through this way, non-Twitter users may or may not be encouraged to sign up. This depends whether they will find the said tweets annoying or distracting. Though Twitter may be willing to take the risk. They can also rely on the ads in the video. That could help the company to increase their revenue.

However, will it be enough?

It Remains To Be Seen

It remains to be seen if this live video strategy will be the answer for Twitter. According to The Wall Street Journal, it does not seem to cause a significant change yet.

Back in 2012, no one would anticipate this for Twitter. It has millions of users and three times as much tweets a day. It also has become a platform where famous people such as celebrities and athletes converse with their fans. In fact, it has brought more interaction for people from different walks of life.

Politicians and other world leaders also have their own Twitter accounts. Now, the future may be bleak for the once dominant social networking site. There are also emerging issues about Twitter. This includes the fact that it is being used in harassment and abuse.

Like Facebook and other social media sites, cyberbullies are hiding behind their Twitter accounts.

SunTrust Robinson Humphrey Inc. Analyst Robert Peck has been asked by The Wall Street Journal about Twitter's current situation. He said that if the video live strategy will not be effective, then there may be no other way left.

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