The social media website has hit a new all time low yet again after its initial all time low share price back in August 2015.
On January 8, 2016, Twitter Inc.’s stock dropped by as much as 2% hitting its new all-time low at $19.76. In the past five trading days, the stock has managed to drop by 15% due to poor user growth. Investors have been quite unhappy because of the sluggish user growth of the social media network. Ever since ex-CEO and co-founder of Twitter, Dick Costolo stepped down from his position in June; the company has been constantly going through a rough patch.
The investors at Wall Street have continuously questioned the strategic direction of the micro-blogging company while others have pointed their fingers at the slow user growth for the decline in the stock. Ever since its one year high of $53.49 back on April 7, 2015 Twitter stock has fallen by as much as 60%. In October, the social media website reported better than expected earnings for the third quarter for fiscal year 2015. For upcoming further quarter, investors and analysts are predicting revenue to be somewhere between the range of $695 to $700 million.
For the latest quarter, 320 million active users were reported by the organization which shows that the monthly active users have just increase by 4 million since its last report. The fourth quarter earnings for the current fiscal year are expected to come out on February 10, 2016. The stock, at this point in time, is in a crisis situation.
In other news, Jack Dorsey stated that he has been looking for different ways in which Twitter users can post tweets specifically something that lets the users make longer tweets. He added that the customers of the social networking website are already doing that by posting the screenshots of the text but he said he would like the tweets to be short, sweet and conventional. According to the announcement, the tweets will now be of 10,000 characters per person from an initial 140-character limit.
It could mark as the end of Twitter when other smaller rivals such as Snapchat and Vine are giving its users more attractive features and options through which they are able to attract a good audience. Back in November 2013, when the company went public it was trading at a share price of $26 per share on the NYSE. The first fall that it witnessed was back in August when it dropped below its initial public offering price and this was the second hit.
Stock of the micro-blogging website is down 22% since it went public but it is not the lowest performing stock; in comparison Square stock is as low as twitter’s as well. It has fallen about 13.8% this week.
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