Can Twitter Spur Growth by Changing Business Model?

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April 30 (Bloomberg) -- Eileen Burbidge, partner at Passion Capital, and Davide Serra, founder & CEO at Algebris Investments, examine second quarter results and user growth at Twitter on Bloomberg Television’s “The Pulse.”

How do you grow this business?

This is something we have talked about.

The business model -- it is difficult to see where it will go.

The revenue is growing, engagement is growing, advertising potential is growing as well.

Mobile users and all those things are growing.

But the growth rate is not growing.

It is not that they are not adding new users, but the rate that they are adding users is not as fast as people would like.

This is the first uptick in user growth in six quarters.

The glass half-full viewpoint would be that that is a good thing.

It is not as strong as you would like, so you are still worried.

It has only been the second quarter they have released results.

At close of the markets, stock was still up 5%. this calls for patience, two quarters is not enough to decide a company is dead or overvalued.

It does have a lot of ground to make but i think the region has and -- the reach it has and the engagement is strong, you cannot ignore it.

Talking of influence, davide, you are on twitter, do you see the value?

I can see it from a personal point of view.

I am on twitter, not on facebook or anything else.

I think twitter is for the best service professional.

If i want to have the same service, use twitter.

I can follow the 200 people i respect.

I think it is like a free bloomberg.

Not the same content.

That feels very elite.

How do you make it beyond that 150 people.

That is what i was thinking.

I use what that -- i use whatsapp.

I am cheap, not paying fromor sms.

Yuan[laughter] i can see why it has whatever billion users.

How can whatsapp make money from me?

If they ask me to pay five dollars tomorrow, i will switch.

I found an alternative.

He is generally used -- he is from genoa.

It will not have the same number of users as facebook and whatsapp.

The value of a twitter account is much higher because, for me, twitter has something that i want, the value of the community.

How many smart people are on it, i value more than whatsapp.

I can see ten or 20 people i need to engage with, they are on twitter, not whatsapp.

We say instagram or snapchat is a rival to twitter, is it?

You consume it for different reasons.

I agree with davide, if you look at whatsapp, that makes twitter seem cheap with a market cap of $24 billion.

If you compare and contrast it that way, twitter is undervalued.

I do not think you can compare it.

The other services do not have the stickiness or the engagement or the community.

They are anti-community for person to person messaging.

Let's brainstorm on what twitter can do.

Should it change the model?

How can i monetize these influential people that are influencing other influential people.

They have a lot of money to spend but you wonder how you get it beyond this kind of elevated -- the fact that it is going to monetize more aggressively, it really did not monetize at all a year ago.

The fact it is going to monetize more aggressively is what i think the streets should concentrate on.

User growth is a bit of a vanity metrics.

It would be great if there were a billion monthly active users but do we care that every person on the street is using it?

That is not where the volume lies.

-- that is not where the value lies.

That is that why people are engaging.

They could keep pushing user growth and that seems to be what people focused on yesterday, which is why they are suffering a decline today.

I do not think that is a fundamental you should vocus on

This text has been automatically generated. It may not be 100% accurate.

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