My comment piece in today’s Observer.
If there’s one thing Wall Street and the tech industry fears, it is the idea that something potentially profitable might peak or reach some kind of equilibrium point. Endless exponential growth is what investors seek. Whereas you or I might think that a company with more than 300 million regular users that pulls in $710m in revenues is doing OK, Wall Street sees it as a potential zombie.
At the root of the dissonance is the fact that Twitter is a public company. At its flotation in November 2013 it was valued at $32bn, a figure largely based on hopes (or fantasies) that it would keep modifying its service to attract mainstream users, that its advertising business would continue to grow at a phenomenal rate and that it would eventually be bigger than Facebook.
It didn’t do all these things, for various reasons, the most important of which is that it wasn’t (and isn’t) a “social networking” service in the Facebook sense. At the heart of the distinction is the fact that, whereas it is easy to give an answer to the question “What is Facebook?”, the answers for Twitter depend on who you ask…