Situation gets worse for Twitter. Twitter’s public debut has plunged deep down with its shares crashing much below the price it initially sold it for. Investors are beginning to concern if it can take up its mainstream platform like Facebook.
Twitter shares which once soared as high as $69 per share has fallen by 6% last evening to below $26 which is Twitter’s IPO price when it opened its market in November 2013. Put in simple terms, the market value of the company has dived to just $17.6 billion from as high as $41.5 billion. The price of stock began to fall around three weeks ago after the release of the company’s second-quarter earnings. The company’s stocks dived as low as $25.92 and are down 28% so far this year.
While working on to find the reason behind the fall, the analysts of the company accepted that it posed a challenge of ‘being too difficult to use’ and so fails to accept new users. The company may boast 316 million monthly users in the platform but apart from the journalists, celebrities and other influential people the number of mass crowd is substantially less.
After the joining of Jack Dorsey as new CEO who has taken over as interim, the pressures have been more to improve the performance of Twitter. He has warned that it would take quite a while before Twitter become capable enough to reverse a slowdown in user growth. Though his frankness has been applauded by analysts, investors are not very happy and they consider the company’s performance ‘unacceptable.’ The company has introduced and changed lot of features and shuffling its product and revising the leadership, but all has proved in vain.
Around a month ago, Dorsey and CFO Anthony Noto clearly stated that the growth will not improve until the microblogging site is able to appeal to a bigger market and that tweaking of products and marketing have met with minimal success. Ever since the IPO, Twitter’s growth has been sluggish whereas its rivals Facebook, Whatsapp , Snapchat, Instagram have been able to attract hundreds of millions of people.
More decline in the share price could pressurize Twitter to look for a takeover or complete its lookout for a CEO. People familiar with the matter said that the board is planning to shakeup which may involve the departure of former CEO Dick Costolo.