The company’s share price has declined more than 50 percent since Jack Dorsey, one of the founders, returned to Twitter in July.
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Twitter, however, is fairly aware of the problems and has launched a number of new products to address the issue.
However, as per the report, the new algorithmic timeline have received mixed reactions from the users. Even arch rival Instagram has surpassed Twitter in September, growing to 400 million users.
Twitter is making changes to their timeline yet again. Twitter actually lost users in the 4th quarter of 2015 too, with two million people no longer regularly checking their @ mentions.
Still, with Twitter’s performance in the fourth quarter, it’s unclear whether a revamped timeline is enough to impress investors as the company struggles forward through a recent restructuring of leadership.
The stagnate of user growth has troubled Twitter since its IPO in 2013 at a huge valuation of $25 billion, but it has dropped over $10 billion recently.
While the former has conjured up the prospect of pitchfork-wielding users storming the company’s headquarters in protest (or, alternatively, just moaning about it endlessly on Twitter), it’s the financials that are more worrying for Twitter’s long-term prospects.
Likewise, Twitter’s Q4 2015 revenue from the U.S. market accounted for 64 per cent of the total at $410 million while its worldwide revenue accounted for the remaining 36 per cent at $230 million.
It is unclear whether the changes will also see some paid-for promoted tweets pushed to the top of people’s timelines at this stage.
Of more direct interest to Music Ally readers are the promise to double down on live streaming video through the combination of Periscope and Twitter. The new algorithm is at an opt-in basis, meaning users can toggle it on or off if they want.
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“We do not think that Moments drove a meaningful increase in users, as much of the content remains outdated or irrelevant”, Wedbush Securities analyst Michael Pachter said in a note to investors last week. Apart from the declining user base, another problem facing the company is the exodus of top talent.
