RUNNING HEAD: Twitter Component #2
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Introduction
Twitter executives established their platform as a free service, so it generates most of its
profits from advertising sales and secondary revenue through data licensing and other services
(Reiff, 2020). In 2020, there is a reported 3.6 billion social media users worldwide and this
number is predicted to increase to 4.4 billion by 2025 (Clement, 2020). With the number of users
that use social media around the world, companies are looking to major social medias like
Twitter, to promote their products through several penetration techniques within the platform. In
February of 2018, Twitter experienced its first profit as a publicly traded company (Tsukayama,
2018). After 12 years of losses, this profit was due to several executive strategies, which allowed
the platform to focus on its biggest profitability factor, which is to push its users to the
advertisements they promote for other companies (Tsukayama, 2018).
Literature Review
RUNNING HEAD: Twitter Component #2
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Balance Sheet
Twitter’s number of total assets has gradually increased since 2017 where they were
listed at $7.4 billion, $10 billion in 2018 and $12.7 billion at the end of 2019
