Twitter Inc. has been currently focused on attracting new users in order to expand its reach globally, as confirmed by its Chief Executive Officer Mr. Dick Costolo in a conference call with companys investors in April 2014. Now the researcher eMarketer made a forecast about the companys growth on different markets.
According to data provided by eMarketer, the percentage growth in Twitter Inc.s home market will decrease to the single digits by 2015. The researcher shared that it expects Twitter to reach a users growth of 12% in the U.S. in 2014. Despite the forecast for the new users in the U.S. is not as positive as the company wants, eMarketer projects a rapid growth of Twitter on the Asian market. According to the researchers expectations, almost one third of Twitters total number of users will be located in Asia at the end of 2014.
As reported by the Financial Times, one of the analysts, who work at eMarketer – Mrs. Deborah Aho-Williamson commented on the researchers forecast about Twitters subscriptions growth, saying: “Twitter’s international opportunity is something that is really just starting to be explored. India, Indonesia and Japan are all becoming much more prominent, much more rapidly than the US and the UK.” Mrs. Aho-Williamson also added: “I think [Twitter] is global in nature, it appeals to people who want to have that global perspective, where as WeChat feels much smaller because it is more about chatting with your friends as opposed to understanding world affairs.”
Despite the fierce rivalry in the region, Twitter Inc. is making a stable growth, and the projection of the researcher is that the social media will reach a number of users in Asia that more than doubles its subscriptions in the U.S. by 2018.
The results dont include any data from China, where Twitter has been imposed a ban by the countrys government. Japan, which is the second-largest market of the social media, is expected to reach a 17% user growth this year.
Currently, India is considered the third-largest market of the company. The user growth there is expected to increase by 57% by the end of 2014. Moreover, the fourth-biggest market of Twitter – Indonesia – is projected to mark a 62% user growth for the same period.
According to some information posted by Twitter in April this year, its average active users on a monthly basis rose by 25% year over year. However, the quarter-on-quarter growth amounted only to 6%, which is a lower result than initially expected by investors.
Twitter Inc. was 3.24% down to close at 30.50 dollars per share yesterday. According to the information published on CNN Money, the 25 analysts offering 12-month price forecasts for Twitter Inc. have a median target of 42.00, with a high estimate of 70.00 and a low estimate of 26.00. The median estimate represents a +37.70% increase from the last price of 30.50.
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