Tomahawk, WI 01/09/2014 (BasicsMedia) – Twitter Inc (NYSE:TWTR) is set to release its first earnings report to the public in February, 2014. The report will be closely scrutinized by investors and analysts alike and compared thoroughly with Facebook Inc (NASDAQ:FB).

Comparison with Facebook

The social media platform is full of websites trying to attract subscribers. Several studies have also reported that Facebook is losing the teen group 16-18 years to Twitter, Snapchart, Whatsapp and others. So, it is expected that Twitter earnings report will be compared with that of Facebook. Though both Twitter and Facebook share the same segment, Facebook is way ahead of Twitter. Comparison with Google Inc (NASDAQ:GOOG) would not be proper.

Twitter Inc (NYSE:TWTR) is still being considered a poor cousin of Facebook. But can Twitter really break free of the tag and move ahead on its own?

Twitter does not have the numbers today to deliver equivalent results. Combine that with the low expectations of the analysts. Everybody knows that Rome was not built in a day. So, time may be on Twitter’s side.

Twitter’s Game Plan:

After the successful IPO, Twitter has seen its stocks zoom in the market. Unlike Facebook, the stocks have climbed up from the issue price of $26 to $59.29 at the end of closing on January 8, 2014. It has been sliding since some days.

Social media platforms have only one revenue source; advertisements. The advertisement revenues flow only if you are able to attract suitable subscribers in sufficient numbers to your platform. And if these subscribers, in turn, see the advertisements and chose their products based on the views. Twitter Inc (NYSE:TWTR) has its work cut out, it has to attract decision making subscribers in sufficient numbers, use targeting techniques to deliver relevant ads to the users without cluttering the page and also to attract advertisers. And the most important of all, show how their business model is different than the other social media platforms.

Having said all this, Twitter still has a long way ahead. It needs to ramp up the mobile platform. Increasingly, users are turning to smartphones and spending more time updating their statuses on smartphones. A cluttered offering would slow down and it may turn off users. The teen group is as such very fickle. With revenues from smartphones expected to overtake that from desktops, TWTR will have to act quickly. Secondly, it will have to also ramp up its targeting software. Less but more effective advertisement will attract advertisers to its platform. Facebook already is ramping this up through its acquisitions.

With time on its side, things are not too bad for Twitter Inc (NYSE:TWTR).

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