This article originally appeared on 60 Second Social.
At the time of writing this article Twitter stock is currently down 2.97% and forecasts are predicting that stock is going to continue to fall further amid concerns of user growth. Twitter stock is sliding at an alarming rate and the company is now facing lingering doubts about its future.
Top management have left the company over the past few months, user growth is low and even worse for investors is that Twitter is now warning them that things will not look up on those fronts any time soon. Chief Financial Officer Anthony Noto told investors the other day that, “simply said, the product remains too difficult to use, this is both a product issue and a marketing issue.”
The biggest problem Twitter is facing at the moment is that they need to find a way to get more users on board and keep them there. At the moment their 316 million monthly active users pales in comparison to the 1.5 billion monthly users on Facebook. In order to broaden appeal, Twitter has introduced a bunch of new features this year alone. From video ability to group messages and tweaks to discovery tools, Twitter wants to appeal to as many as possible.
We also reported this morning on how they are working on a News tab which we could see sooner rather than later if the numbers are anything to go by.
Twitter needs to make the service easier to use, sure it may make perfect sense to many people however it is not making sense to the critical numbers of people that it needs in order to survive. A chart provided to us by Statista shows how Twitter’s stock has fared since they first made their entry onto Wall Street.
Twitter’s stock hit an all-time low earlier this week after shares slumped 5.6 percent to $29.27. That pushed Twitter’s market value below $20 billion, making it a potential acquisition target for companies like Google and Facebook. However, analysts believe it will have to fall a further $10 billion for those tech giants to seriously consider any kind of approach. Twitter hit an all time high of over $70 in December 2013, two months after it went public.
As it is pointed out by Statista, Twitter stock is not currently at a point where it would be considered a potential takeover target. However, there is a good chance that it will fall a further $10 billion that people believe will put it into takeover territory.
Josef Schuster, whose firm, Ipox Shuster LLC holds Twitter shares, said that the company’s stock may fall as low as $17. This is a level that would possibly attract interest and maybe that is not such a bad thing. I have never really felt that Twitter has fared well under the pressure of Wall Street.
They have been under intense pressure from investors to deliver results and to grow numbers, maybe returning to private company status following takeover could be the best option for them.