Twitter’s fantastic run may have run its course. Seriously. This 140-character messaging online service company may have reached its evolutionary end. There are really only so many ways you can try to milk water out of a rock. The reality about Twitter (NYSE:TWTR) is that it is a one-trick pony.
Sure, it gets a lot of media attention. Sure, a lot of influential people use it. But guess what. There are other messaging platforms out there. Moreover, there are better-structured and deeper social media and content-sharing technologies with better potential and actual revenue streams. I am, of course, talking primarily about Facebook (NASDAQ:FB).
Facebook Messenger is a serious contender to Twitter, and Facebook is opening up its Messenger system to developers. Once APIs that tap into Messenger start making the rounds, this may spell the beginning of the end for Twitter. Facebook has a more robust environment. Moreover, its brand appeal allows for more entry points and paves the way for a multi-layered marketing strategy.
While I am excited about Twitter for the limited reason that it is surprising many people for its ability to raise revenues, this one piece of good news may not be enough to make this stock worth buying. If it doesn’t solve its user base burnout problem, it may have a tough time in the future. Considering the fact that it seems to be a one-trick pony despite the fascination media has with it, it needs to move quickly as far as depth and add-on features are concerned. It doesn’t have that much time left to get its act together. Consider yourself warned.