Twitter’s share price is getting battered once again. The company’s stock has tumbled by more than 14 percent in trading today, a day after the social media platform posted an earnings report that pointed to weak growth in user numbers both in logged in and logged out users; sluggish revenue; and mediocre projections for Q3, Tech Crunch reports.
Twitter is facing enormous challenges and it failed to maintain its shares. According to the details, Twitter’s stock went as low as $15.69 on Wednesday. It closed at $15.77, down 14.53 percent. That figure is well off its 52-week high of $36.67 from almost a year ago. According to the reports, the market cap of Twitter is now $10.95 billion, well below its IPO value of $18 billion. The investors who are not convinced about the business projections continue to sell off the shares.
Yesterday, Twitter reported a mixed Q2. While it better analysts’ estimates on earnings per share, its revenues of $602 million was less impressive — within the company’s estimated range, but falling short of what analysts had expected.
Another problem is the direction the revenue is going: $602 million was virtually unchanged from the previous quarter, and only about 20% higher than a year ago. The bulk of Twitter’s revenues come from advertising sales, and the key to the problem is that revenue growth is slowing down. A year ago, the revenue figures were up 60% on the year previously.
On the other hand, if we see Facebook, it has once again achieved an excellent quarter. Its second-quarter earnings report showing the all-time high stock price of $123.34 has amazed everyone. We can say that it is time for Twitter to adopt some changes if it wants to increase its user base as well as share price.
After acquiring WhatsApp, Facebook is progressing rapidly, and its users are increasing. With the launch of cool features such as the Reaction buttons, Instant Articles, and secret messaging, the king of social media has become a nightmare for Twitter.