Twitter could not benefit from the US election campaign. In the US, the user figures remained unchanged. With a turnover of 0.9 percent to 717.2 million US dollars, the short news service missed the expectations.
In the past quarter, Twitter has not been able to benefit from the US election and the tweets of Donald Trump. The growth in user numbers and sales slowed even, the loss increased significantly. The stock fell by more than eleven percent on Thursday before trading.
The number of monthly active users increased by only two million in the final quarter of 2016 to 319 million. Perhaps the most surprising: in the US, there was no growth, 67 million users remained unchanged.
Trump bad for the Twitter business
In the third quarter, Twitter had attracted more users: four million worldwide and one million in the US. Trump had been on the finish line of the election campaign until November and also in his first weeks as president for much attention with his controversial Twitter news.
"If the Trump effect does not bring any growth in user numbers, what can it do?", Analyst Michael Pachter of Wedbush Securities commented. His colleague Richard Kramer from Arete Research even suspects that Trump could be bad for the Twitter business. His tweets may have caused so many conflicts that they scared advertisers, he said on US CNBC. The advertising revenues - Twitters main source of money - declined slightly year-on-year from 641 to 638 million US dollars. The Christmas business is traditionally a good quarter for online advertising.
Expectations
With a turnover of 0.9 percent to a total of 717.2 million US dollars the Kurznachrichtendienst missed the expectations of the analysts. The quarterly loss grew to $ 167 million from $ 90 million a year earlier. In the past year, Twitter lost nearly $ 457 million after $ 521 million in 2015.
The short news service has been fighting for some time with slow growth and red figures. Twitter boss Jack Dorsey wants to focus the service on current news and video content. Recently, about 600 hours of live video had been broadcast over the service, it said. However, with 31 million users, only around one tenth of them saw anything.
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