Twitter stock has been called 'Junk' after the departure of four top executives; analysts believe the management won't bring better days for the company.
On Sunday, the chief executive officer of Twitter Inc. confirmed the news of four top executives leaving the company that included Katie Stanton, Kevin Weil, Skip Schipper and Alex Roetter. The major problem of the organization solely lies in its inability to attract users. After the news of the four executives leaving surfaced, the stock of the company plunged 4% during the trading session on Monday.
An analyst at Global Equities, Trip Chowdhry called Twitter stock – junk. The stock expert believes that the micro-blogging company’s stock is likely to fall to $5 per share. He strongly believes that bringing in a new team of executives will not bring a change and the stock will still be categorized with GoPro, Box and Fitbit; it will never reach to Facebook Inc.’s level.
As Kevin Weil, the core product head leaves the company, Adam Messinger will be taking his place who was initially the technology chief. He has been working for the company for over five years so the employees are quite familiar with him; currently Twitter is not looking to hire a new product head, according to the social media network’s spokesman.
Time after time, the social media website has stated that the worst days are over when only it is always just a beginning of such days. Initially when the board re-appointed Jack Dorsey and chief financial officer Anthony Noto was hired, the same statement was made, according to which the company was to see better days. Unfortunately, better days have not yet arrived for the micro-blogging website.
Mr. Chowdhry, after being so cynical, still believe that there is hope for the company as it can expand and promote itself in Asian countries including the second largest country in terms of population, India. He stated that it could become a tool for the government to keep a check on the citizens and could make investigations easy as well.
He also suggested that in case the website shows signs of gaining more users, it would be the perfect time for the investors to sell the stock. He added that the novelty aspect of the stock is going away so the investors should seize the opportunity since it will be quite difficult for the stock to regain its novelty.
Additionally, the CEO stated that after Mr. Messinger is appointed as the product head, he will be working closely with him – day and night to work on building a better experience for the users. The stock, on Monday fell by 4.6% and is currently being traded at a share price of $17.02, which is close to year another all-time low.
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