New research shows that social media is likely to grow at a much slower pace than predicted by investors.
Analysts at RBC Capital Markets were bullish on Twitter during the first quarter of 2018, but they were concerned about the company’s growth prospects.
That’s because Twitter’s share price has fallen from $11.30 a share to around $6.70, which means its revenue is only about $1 billion.
Twitter is expected to report earnings of $1.15 per share in the first full quarter of 2019.
That would put the company well below its $5 billion valuation in 2019.
The company has also been unable to find enough cash to fund new expansion plans, so investors are likely to be disappointed.