This Might Help Explain Twitter’s Decline

twitter-twtr-logoSocial media giant Twitter Inc (NYSE:TWTR) has had a rough year, and a really rough Q2. One of its main competitors may be behind its recent woes, for a not-so-obvious reason.

The secret lies in Facebook’s latest report, in which the company noted some amazing growth in its search segment. Recently, FB refocused its search functionality on keywords, which allows users very Twitter-like targeting of news topics and other areas of interest. And just like Twitter, Facebook supports hashtags too.

Until recently, Twitter was beating Facebook when it came to search. But according to FB’s latest data, the company is now seeing more than 2 billion searches per day. That’s just about the same number of TWTR searches per day, according to the latest data we could find.

Mark Zuckerberg noted, “The growing way that people use search is to find what people are saying about a topic across more that 2.5 trillion posts. Now people are doing more than 2 billion searches a day between looking up people, businesses, and other things they care about.”

In summary, Facebook wants its users to offer quick takes on topics (like Twitter) and users are now searching it billions of times per day for quick takes on topics (like Twitter).

This phenomenon might just explain why Twitter’s growth has plateaued so much. So how in the world will Twitter manage to stave off Facebook if these trends continue?

TWTR-2016-07-28

Twitter shares rose $0.48 (+3.01%) to $16.24 in afternoon trading Thursday.

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