On the night of Thursday to Friday, the title of the microblogging site fell to 26 dollars. He thus regained during its IPO in November 2013. The Action Twitter sparked a wave of enthusiasm on Wall Street and was gone in the following months to more than 70 dollars. But then she quickly relapsed, investors are worrying to the group’s ability to maintain its growth and expand its audience as well.
The slump has accelerated during the summer at the lack of prospects company growth and governance difficulties. The main problem with Twitter is the weak growth in the number of its users. The number of users grew by only 2 million sequentially to 304 million in the second quarter. The increase reached 12% year on year, but this more modest growth from one quarter to the next is rather worrying at this stage of the development of Twitter. Finally, on its forecasts, Twitter anticipates revenue in a range between 545 and 560 million in the third quarter against 555.8 million expected by Wall Street. Twitter claiming 316 million subscribers in late June and only 44% connect daily on 20 major markets of the social network. By comparison, 65% of 1.49 billion Facebook users worldwide will access daily basis.
growth failure
The situation has worsened in early July after the resignation of CEO Dick Costolo. Since then, the interim is ensured by a co-founder of Twitter, Jack Dorsey, also head of mobile payments company Square, which is preparing to go public.
The task of new boss may be particularly complex. The financial director of the group, Anthony Noto, is indeed confessed at the publication of the latest results there would be no significant and sustainable growth in the number of users as Twitter would not affect the general public, which , he added, “will take a considerable time.” A confession which was heavily penalized on the stock market: the stock has lost nearly 30% of its value since the presentation of the latest quarterly results in late July
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