Twitter Inc (NYSE: TWTR) stock has been on the uptick since its first quarter results were announced. Though Twitter Inc (NYSE: TWTR) has been maintaining that it offers huge advertising value for business and enterprices, revenue declines might leand to loosing mass appeal. Twitter stock price still seem to be overrated until Twitter Inc (NYSE: TWTR) uncovers a way to boost growth and profits. Exceeding estimates is a positive; but the company still is in red. The 7 percent fall in revenue to $548,251,000 is a broad indicator that there’s a trouble with Twitter’s business modle. Further Cost of revenue grows, while revenue shrinks might be a indicator of mismanagement. Twitter Inc (NYSE: TWTR) might be failing to catch up with fast changing technology dimensions, this is further evident with the cost of revenue increasing by 11 percent to $220,339,000.
Reecently Twitter Inc (NYSE: TWTR) has seen some shake up with the return of co-founder Biz Stone on full time and Ross Hoffman, VP of global content partnerships who has been with Twitter Inc (NYSE: TWTR) for seven years and Ameet Ranadive, VP of revenue products leaving the company.
Twitter Inc (NYSE: TWTR) has been exploring many revenue and business opportunities, recent has been introduction of Paid Service, where in influential users, brands and news organizations might be included in the program. Thought it is early to go in depth on this issue but it is a sign that the status quo of the business may be a thing of the past.
Though Twitter Inc (NYSE: TWTR) share are currently attractive for a value investor, growth and growth at a reasonable price (GARP) investors the current Twitter stock price might be still too expensive.