Twitter who had troubles that the number of users did not increase for a while smiled brightly.
Twitter reported that the number of monthly users increased by 9 million from January to March this year.
This is the largest increase since 2015. But quarterly sales fell for the first time since Twitter was publicly traded.
Twitter has been a place where President Donald Trump has publicized his policies and political views straight away out of his candidacy and election so far. The social media was expected to increase the number of users due to the Trump effect, but the increase was minimal.
In the fourth quarter of last year, the number of users increased by only 2 million. It is not comparable to Facebook’s 72 million increase.
“The trump effect may have been delayed a little,” said Re/code, that reported a sudden surge in Twitter users early this year.
“There is some evidence that more news and political controversy in the United States has increased or attracted new or revitalized users and benefited from it,”
“There is some evidence that more news and political disputes in the US have increased the number of new or reactivated users and benefited from it,” said Anthony Noto, Chief Operating Officer, and Chief Financial Officer of Twitter.
Re/code noted that Noto used the term ‘resurrected’. ‘Resurrected users’ means that the owners of the so-called ‘dormant account’, who did not use their Twitter account for more than a month, started their activities again. “The dormant Twitter account is likely to be more than a billion,” Re/code said. “If you activate them again, Twitter can have tremendous opportunities.”
Twitter shares have risen about 10% since the announcement of the number of Twitter users.
However, according to the results released on the same day, Twitter sales fell 8% to $ 548 million.
“It seems that Twitter reflects the loss of advertisers’ trust,” said Re/code. “Advertisers are moving to more popular services like Instagram.”
“The increase in the monthly number of users in the first quarter was not directly related to the revenue of the quarter,” the company said. “This will affect sales in the second quarter.”