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Growth in MAU Reached Its Lowest Level to Date

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Active online users

The majority of the Twitter’s (TWTR) users are from Asia–Pacific and North America. However, domestic user growth is dropping. In 2Q15, Twitter reported 304 million monthly active users (or MAU), comprising desktop and mobile users. Out of Twitter’s monthly active users, 250 million are mobile monthly active users. Market leader Facebook (FB) added more users just in the US than Twitter’s additional monthly active users globally.

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There are nearly 3.2 billion global Internet users, which indicates there are numerous market opportunities that can be filled. The China market alone has 1.6 billion Internet users, followed by 623 million users in the US. The First Trust ISE Chindia ETF (FNI) has 6.34% and 6.89% holdings of JD.com and Alibaba, respectively, which dominate the Internet sector. JD is among the closest rivals to Alibaba and although its business model is different, JD competes Alibaba for China’s massive Internet population.

Drop in monthly active users

As shown in the above chart showing Twitter’s monthly active users (or MAU), 2Q15 had its lowest growth of 0.66% over its previous quarter. Plus, its mobile MAU shows a 4.30% growth over its previous quarter’s level of 5.04%. A monthly active user is a person who logs in with credentials, even if the user does not take any action on the site.

Twitter’s MAU includes many users who are passive, including mobile lock screen apps that automatically ping Twitter for updates. Twitter does not break out the actual number of users who post tweets on a monthly basis. If we compare monthly active users from historical data from 2011–2015, the number of mobile monthly active users always remains around 80% of total MAU.

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