Social media network Twitter has reported its slowest pace of user growth, wiping out more than 10 percent of its value on Wednesday.<br /><br />The company posted better-than-expected quarterly revenue of $243 million (around 179 million euros) in its first results as a public company, but investors focused on Twitter’s slow user growth and a decline in user engagement.<br /><br />Some analysts warned that its valuation looked increasingly bloated.<br /><br />Scott Kessler, Head of Technology Equity Research, S&P Capital IQ, explained: “Twitter is not the first, the second, or the third but the forth largest global social network based in the US behind Facebook, Google+ and behind LinkedIn and there was a reason for that because it is just not as accessible or easy to use as maybe other platforms are,” explained Scott Kessler, Head of Technology Equity Research, S&P Capital IQ.<br /><br />“And then I think what’s really important is the second item, which is it costs a lot of money to invest and expand and sustain growth,” Kesser added.<br /><br />To increase revenues, Twitter has invested heavily in its ad targeting capabilities, while advertisers have shown willing to pay more for better-targeted ads.
