Tomahawk, WI 2/24/2014 (Basicsmedia) – The honeymoon seems to be over for Twitter Inc (NYSE:TWTR). The fourth quarter results showed the fundamental weaknesses in the micro blogging site and now investors and analysts want results.

The Fundamental Difference:

The fourth quarter results, the first public results by the company, showed that new users were not signing in and the old users had decreased their login time on the social media platform. The advantage of a novel platform seems to have worn off with my users preferring to follow their favorite persons rather than contribute to the tweets themselves. This kind of stand-offishness will hurt Twitter Inc (NYSE:TWTR) in the long run. Advertisers, looking to connect with the actual user base of the company do not find this trend desirable. They want the users to be committed and very involved in the process. Something Facebook Inc (NASDAQ:FB) has managed to do in spite of losing user groups.

Staying Mainstream Versus Being A Niche Player:

Twitter Inc (NYSE:TWTR) has already decided to become a mainstream player and is changing its content to make it more relevant. It will also have to find ways and means of become a mainstream product, a product so appealing that users cannot afford to spend a few hours away from it. Some changes are already being implemented; others are on the drawing board. It does not have the deep pockets of Facebook Inc (NASDAQ:FB) to acquire companies. Twitter Inc (NYSE:TWTR) has paid $19 billion to acquire WhatsApp; Twitter has just $2.2 billion in its bank balance. This will force the company to look inwards. Advertisers are very hardnosed people, they want the numbers to justify the rates they pay. If Twitter cannot come up with the numbers, they have several other alternatives.

It is not time to panic yet. The potential is still there. After all, the monthly active user base increased by 30% to reach 241 million in the fourth quarter. Twitter Inc (NYSE:TWTR) should also understand that one quarter is not representative of its true potential, but it can serve as a wakeup call.

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