How does Twitter make money?

Twitter (TWTR) is a social media company that provides a network connecting users to people, information, ideas, opinions, and news. The company's services include live commentary, live connections and live conversations through mobile devices and the Internet. The company can also be used as a marketing tool for businesses.

How Twitter Makes Money

Twitter earns 86 percent or more of its revenue from advertising. In the fiscal year 2017, Twitter posted an advertising revenue of $2.1 billion, which was a six percent decrease of what the social media site brought in during the same time in 2016.

Twitter uses promoted tweets, promoted accounts and promoted trends. Twitter also sells promoted tweets to marketers, and these then appear in users' Twitter feeds. The company creates tailored advertising opportunities by using an algorithm to make sure promoted tweets make it into the right users' timelines. Promoted accounts are those paid for by an advertiser that Twitter places in targeted users' "Who to Follow" list. 

Read more: How does Twitter make money? | Investopedia https://www.investopedia.com/ask/answers/120114/how-does-twitter-twtr-make-money.asp#ixzz57fReFZFu
Follow us: Investopedia on Facebook

Twitter cuts 9% of staff and kills off Vine app

Twitter is cutting its staff by 9% after a widely rumored sale process appears to have come to nothing.

The layoffs are expected to impact about 350 employees across sales, partnerships and marketing efforts, according to the company. The goal is to push Twitter (TWTR, Tech30) toward profitability as an independent company.

"The restructuring allows us to continue to fully fund our highest priorities, while eliminating investment in non-core areas and driving greater efficiency," Twitter said in its third-quarter letter to shareholders on Thursday.

http://money.cnn.com/2016/10/27/technology/twitter-layoffs-earnings/index.html

by Seth Fiegerman   @sfiegermanOctober 27, 2016: 7:45 PM ET