Twitter Begins The Year On A Low

Twitter Inc TWTR has had a rough start to the year, as the company's share price has already declined 27.87 percent. Not only has the firm suffered questions regarding its long-term success and profitability, but the site also experienced an extensive shutdown on Tuesday.

However, with the firm's share price well below $20 now, many investors are wondering whether there is a case to buy the little blue bird in hopes of a bright future.

Trouble Making Money

So far, Twitter has struggled to monetize its platform as well as grow its user base, two problems that many worry the site cannot overcome. However, Twitter executives said that 2016 could be a turnaround year for the company as it works to innovate the site and draw in new users.

Related Link: Twitter Confirms Service Is Fully Restored, But Investors Don't Seem To Care

Catalysts

Many see Twitter's efforts to expand into online video as a potential source for growth. The company's Periscope app has been gaining popularity as a live-video streaming service and it could become a money maker as more and more advertisers take notice.

Many are also expecting the site to see increased usage in the coming months as the Presidential elections heat up. Twitter's concise, to-the-point service has proven conductive to news reporting, so the social media platform is likely to gain momentum as political campaigns look for ways to reach voters.

Downfalls

On the other hand, many argue that Twitter has very little long-term potential, as the firm doesn't solve any problems for the public better than existing sites like Facebook Inc FB.