Mark Skilton of Warwick Business School said: "The continued performance failure at Twitter is part of an underlying structural problem and culture at the company and its inability to move beyond its early foundations as a simple microblog. 

"Its 319 million user base is simply not engaged enough in direct revenue generation for the company.

"While investing in media streaming and niche changes to the website, Twitter's management has failed to grasp the opportunities that Facebook and LinkedIn have taken in monetising their users by advertising or selling subscriptions for communities and lifestyles. 

"Just like Myspace perhaps Twitter does not want to 'change the formula' for fear of losing its unique simple user experience, but the shareholders and CEO Jack Dorsey are running out of time. These figures will make it a target for a takeover if this slide continues."

Mark Skilton, of Warwick Business School, is a Professor of Practice in the Information Systems & Management Group and researches digital technology firms.