Tomahawk, WI 01/06/2014 (BasicsMedia) – Those invested in Twitter Inc (NYSE:TWTR) or considering a position in the stock might want to know if the company will not be hit with the challenge of teen exit as Facebook Inc (NASDAQ:FB) is having it.

Twitter Inc (NYSE:TWTR) is the latest social network company to IPO in the U.S., and the company is still riding high on its IPO wave, unlike Facebook Inc (NASDAQ:FB) which suffered soon after going public.

Can Twitter Inc (NYSE:TWTR) survived exit of teens from its network? Apparently, social network is an industry that is full of dynamics. Sometimes newcomers learn from the blunders of their predecessors to fair better in the business. However, sometimes the challenges are just very unique and they have to be dealt with as they come.

If you talk about learning from the predecessors, Facebook Inc (NASDAQ:FB) chose to IPO only after it had attained a big user-base to ensure that it does not suffer the fate of Friendster and MySpace which lost their glory to loss of users. In this segment, Twitter Inc (NYSE:TWTR) is no well placed. The company boasts about 300 million users and this means that it is vulnerable if it were to be hit by user-exit challenge.

But that is not the issue now, what is of concern is what will happen if Twitter Inc (NYSE:TWTR) more senior people where to join the network as they have done with Facebook Inc (NASDAQ:FB) and then suffer teen exodus.

It looks likely that with its ongoing expansion, Twitter Inc (NYSE:TWTR) will register an increasing number of senior citizens in its network. And has it has been established, teens always leave when a social network turns into a tool that even their parents can use. As such, we can expect Twitter Inc (NYSE:TWTR) to witnessed the exodus of young people from its network.

If this happens, the impact will be more devastating than it is currently with Facebook (NASDAQ:FB). For Facebook Inc (NASDAQ:FB), dealing with teen exit problem has meant expensive acquisitions and overhaul of its other nextwork platform called Instagram. Twitter Inc (NYSE:TWTR) may not be very lucky to have the dollars for expensive acquisitions, neither will there be time to setup a new platform to rival Instagram, Snapchat, WhatsApp and the likes.

The only hope for investors is that Twitter Inc (NYSE:TWTR) shouldn’t experience teens’ revolt before it stabilizes its operations because if that does happen, the stock would obviously suffer. The reason for this would be because presently many investors are buying the stock because of the advertisement prospects it has.

This prospects are coming to Twitter Inc (NYSE:TWTR) because it has an attractive demographic collection which mixes young people of various ages as well as society figures. This makes the platform a good bet for advertisers; however, if it cannot hold this demographic arrangement, advertisers would have no value putting their money in it.

Seven years of losses

Twitter Inc (NYSE:TWTR) remains under pressure as a stock. Many investors are still on the sidelines waiting to see how things play out, and they are right. In fact, even those jumping on the stock are doing so cautiously considering that the company is yet to see profits for its seven years in business. This challenge coupled with the possible teen revolved should invite sobriety among investors considering a position in the stock.

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