The question always comes up in about the same way whenever I have a new client seeking social media advice.
Client: “I don’t get Twitter. Can you explain it to me?”
Me: “It’s like a personalized news ticker and public chatroom.”
Client: “That’s it? That’s all there is to it? Why is there all the hype?”
At this point, we have less dialogue and more handwaving. People who aren’t on twitter already don’t “get it” and will probably never become users. That’s reflected in their falling growth rate, down to 4% each quarter. And it’s starting to show up in their stock price now that the six month lockup period is over, allowing insiders a chance to sell. It’s below $33 a share, down 25% from the first day of the IPO last November. It’s worth about $19B total, about the same as Facebook’s tab to buy WhatsApp.
Is Twitter dead? No, MySpace and AOL are still around – but that’s where it’s headed at this rate.