Twitter took a pretty huge hit on Wednesday in the stock market as shares tumbled to almost 9 percent. The social media site closed the market with their lowest price ever since going public in November of 2013.
It was reported that Twitter’s monthly active users are down 8 percent from last year. Even on the international level, the social media site has reduced in users. In the first quarter of this year, the site used by international users averaged at 27 percent. At the end of last year, the site was made up of 34 percent by international users. That is a 7 percent drop, as Twitter is having problems sustaining users outside and inside the U.S.
Despite the hit on Wednesday with the stock market, the site’s management team insist that the company is making progress. When the site went public in November, the IPO was $26 and ended at $45.10. It was a good start for Twitter, but the company has only been braking even in profits ever since going public.
On Wednesday, the stocks ended at $37.24. That price is still way above the IPO price that was started six months ago. However, Wednesday’s stock price for the site has been the lowest since it went public. The ones who suffered the most are the buyers from late December who bought into the company at almost $75. With the low price that came about on Wednesday, the hit was almost a 50 percent loss. That is a painful loss for investors or for anyone.
As of now, Wall Street has been divided into two groups when dealing with Twitter. One group believes that the site is an overhauled company with its potentiality fading away. The other group believes that the social site will be as big as Facebook and will profit those who buy into it. So far, the Wall Street group that believes that the site is fading could be correct after Wednesday’s outcome in the stock market.
Back in December, the story was different and the Facebook dream status for Twitter seemed to be pretty close. Despite the fact that the social site is still above its IPO that was started in November of last year, concerns still exist that the company will never amount to the billions Facebook is producing.
As for Twitter, the company does not compare itself to Facebook. CEO Dick Costolo is not set to compare the site’s success to Facebook’s success. Costolo sees the site as a real-time conversation platform that is happening in the moment with the user. It is for this reason that Costolo claims that the social site runs on a different platform compared to Facebook.
The key to getting Twitter back to shape is to get more active users. CEO Dick Costolo is working on the dilemma in order to keep the social site from taking any more hits in the stock market. Costolo claims that he is coming up with ideas for the site to bring in more users. The social media site will do this on its own terms still run on its own type of platform. The plan will have nothing to do with Facebook’s success or even try to have comparisons.
In the end, the social meida took a nice hit with the stock market and will need to find a way to get back to get where it was like back in December. Stocks, then, were at almost $75 dollars, and it would be nice for Twitter owners to hit those levels again.
By Jose Herrera