Twitter (NYSE: TWTR) sucks at protecting its users from online attacks. At least that's what CEO Dick Costolo admitted to recently. It's been a problem ever since the inception of the social media platform, and it seems as if the company is finally taking it seriously.
But why is that? Frankly, it's because the company is desperately struggling to increase its user growth. As Costolo put it in an open letter:
We suck at dealing with abuse and trolls on the platform and we've sucked at it for years. It's no secret and the rest of the world talks about it every day. We lose core user after core user by not addressing simple trolling issues that they face every day.
In fact, Twitter's user growth fell below Facebook's for the first time in the most recent quarter, not good news for a social media site that is so far behind its competitor in so many ways. In that sense, it puts an asterisk on Twitter's astounding revenue growth (double last year's) and beat on earnings. Because if the company can't sustain its growth, revenue will meet its peak shortly thereafter.
So the question is, how will Twitter manifest these changes without going back on its fierce protection of free speech? And will it be enough to convince people to come back? It will be interesting to see what changes will actually be implemented, but I believe this is just a small drop in the bucket of problems Twitter needs to clear up to stop the bleeding.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.