Since the middle of March, Twitter's (NYSE: TWTR) stock has been on quite the run. Shareholders have been waiting for the company to report faster user growth, and it seems they're getting what they've been asking for. However, if we look beyond Twitter's user count, we find problems that don't seem to have easy solutions. The company is growing users, but until it can turn them into profitable relationships, long-term investors should avoid Twitter's shares.
The pandemic has unmistakably fueled two activities. First, people are constantly looking for information, which has increased social network user growth. Second, video usage has climbed as everyone looks to fill their time at home. In Twitter's Q2 2020 conference call, CFO Ned Segal said much of the company's user growth was driven by "the events around the world."
Image source: Getty Images.