That development gives investor reasons to cheer, as do revenue opportunities baked into Twitter's partnership with Google to display real-time tweets in search results and its recently announced deal with the NFL to stream Thursday night football games.
But that good news is being offset by bad news, according to Cakmak.
"All the new dollars that they are getting are completely cannibalizing revenues from their old products, and the fact that even though impressions — the number of times you view adds — is growing, pricing is falling off a cliff," he told CNBC's "Squawk Box."
This is happening as Twitter focuses on video ads that automatically play when a user scrolls past them, he said. However, Facebook has managed to increase both impressions and pricing as demand grows for its own autoplay ads, he added.
Twitter's first-quarter ad sales came in at $531 million, up 37 percent from the prior-year period.
In Cakmak's view, the social media site's strategy is sound. He noted that 77 percent of people use computer and mobile devices while watching television.