Why Twitter Lacks Innovation

October 26, 2017
Updated 6mo ago
Twitter beat earnings expectations for the third quarter, but it still won't share data on how many daily users it has on its platform. Scott Kessler, Equity Research Analyst at CFRA, joins Cheddar to break down the report. He says that user growth is the key to getting this company to a place of profitability. He would love to see the actual numbers on its daily users, rather than just growth. Without those numbers it's hard for advertisers to keep putting ad dollars behind the platform. Kessler says Twitter's earnings have been very inconsistent, and its revenue forecast for Q4 was still not a positive. He believes this is due to its lack of innovation. Yes, it's done a great job at being transparent with its political ads and revamping its online harassment policy, but what about creating new products for its users to be excited about? Expanding the character length won't do it. Ultimately, users are the key to monetization.