Is Twitter's User Growth Slowdown a Red Flag?

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Oct. 3 (Bloomberg) -- Bloomberg's Ari Levy discusses Twitter's user growth and largest shareholders with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Coverage for the last several weeks, waiting for these numbers to the public.

Now that we know more than 200 million active monthly users, 100 million active daily users.

User growth is slowing down and slowing down pretty fast.

Is that a red flag?

The point that cory mentioned is really key, which is that the revenue per user figure and how that evolves over time, right?

When you look at social media companies, you're typically dealing with somewhere in the neighbor of $1.50 to two dollars per user per quarter.

That is about how much they generate.

Twitter has this incredible opportunity to bump that number up.

There are so many advertisers that are looking for ways to spend money on twitter.

They tell us they cannot spend enough money there.

The balancing act for twitter is, how do we generate revenue, how do we bring in more advertisers and organically put this into the twitter feed, the newsfeeds, without annoying our users?

It is a really critical balance, it has been an issue for them since day one, and now as they are pitching this to wall street, it becomes all the more critical.

You have been looking closely at the stakeholders.

We know evan williams has a 12% stake.

He's the biggest individual or institutional stakeholder in his company.

Jack dorsey, the second-biggest individual stakeholder, 4.9%. the ceo, 1.6%. some big institutional investors, benchmark capital -- tell us about some of these investors and your reaction to how the shareholders breakdown.

It is interesting about evan.

Evan williams shows you how -- a sickly, the company was his to begin with.

He was having difficulty raising substantial rounds for the company.

He put a lot of his own money in.

If you have a 12% stake in the company at this point and it is worth $10 billion, it shows that those early days were yours.

He raised around from some folks that he partnered with at odio.

Charles rivers ventures was one.

That was part of the first round.

They raise money from union square very early.

Benchmark him around later.

-- came around later.

Big investors invested somewhere between $20 million and $100 million.

If they do not sell any, you're

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