Twitter (NYSE:TWTR) came out with a very disappointing earning report at the end of July, with respect to user growth, but revenue came in at $502 million (and adjusted earnings of $0.07 per share) which was 60% higher than the corresponding quarter in 2014. However, the user growth came in very sluggish with the company only gaining only 2 million users since the first quarter of this year.

Its competitor Facebook (Nasdaq:FB) is flying high with consistent user growth and I just feel that too many analysts have turned bearish on Twitter because of the company’s sluggish user growth. Furthermore Twitter’s management came out in its latest conference call and stated that user growth is likely to underperform over the next 12 months. This led to many analysts downgrading their Twitter target prices, which caused a nasty sell off. Twitter stock is now trading at $27 a share which is disappointing for long term investors who are heavily underwater on their positions. However I feel the stock will bounce off its lows very shortly due to many changes taking place within the company.

Firstly, the company appears to be concentrating on its strengths which is definitely revenue growth. Up to now, the platform has been available to advertisers in 33 countries but recently the tech company announced that now the self service ad platform would be available in over 200 countries and 15 languages. This should definitely bring in more advertisers over time and more users along with it. The question remains “Will Twitter be able to reach mass market with its platform?” That question remains to be seen but I believe this company will still grow because its “ad revenue per user” continues to grow over time. Furthermore managment feels that there is more scope for growth here because it can decrease the tweet to ad ratio. It must be careful here though as having an ad every 10 or so tweets could interfere with user engagement.