- Accuracy in Media - https://www.aim.org -

Twitter’s IPO could take a hit with Inactive Users

WASHINGTON — Twitter is facing significant hurdles if its initial public offering (IPO) makes it to the finish line. Now there are doubts whether Twitter/s revenue model, or its entire social media model, is sustainable.

twitter [1]Reuters reported [2] that they polled users and found 36% do not use their accounts and 7% have deleted their accounts.

They polled 1,067 Twitter users and whose margin of error was plus or minus 3.4% and was conducted online.

By comparison, Facebook only has 7% inactivity rate and 5% deleted their account entirely, which poll had a margin of error of 2.3%.

Twitter is trying to raise at least $1 billion for its IPO [3] and avoid the fate of Facebook, whose value plummeted at first, but only recently surpassed its original price [4] in 2012.

Twitter’s ad revenue surprised potential investors as it reached into the billions of dollars [5]. Twitter is expected to start trading on the New York Stock Exchange mid-November.