What’s up loyal readers? I’m back with a full slate of material for today. There’s no shit-eaters on deck, but we have a lot of ground to cover nonetheless. Let’s start off with some news fresh off the wire about Twitter. It looks like their recent tailspin is going to get worse before it gets better…if it ever does get better.
I’ll be honest, Twitter is pretty important to my reach. Sometimes news comes from there as well. The original Leigh Alexander posts, which put me on the map, are comprised of tweets. It’s not just these factors, either. I genuinely love the service. I’ve met a ton of cool people on there, some of whom are now integral in my day-to-day life. So when I see things being completely mismanaged, it’s not a good feeling. One would think someone at headquarters might buy a clue one day, but I’m not getting that feeling recently. I do know that going public looks like it was a huge mistake at this point. The negative drumbeat from the financial press is taking a huge toll.
Speaking of that, here’s news on the latest fail. Twitter’s stock price has now fallen below it’s initial public offering price:
Since [CEO Dick Costolo’s resignation], the shares have fallen a further 31% as investors fret over the speed and quality of Mr Costolo’s replacement.
In addition recent financial results have disappointed with growth rates in monthly active users slowing in the second quarter.
Twitter’s inferiority to Facebook from a revenue generating perspective is a concern, with Facebook generating 71% more revenue per active user than Twitter in the three months to 30 June.
Twitter shares closed down 7% at $25.67 in New York after taking into account after hours trading – an all-time low and below its 2013 initial public offering price of $26.
Since its shares peaked in December 2013 nearly $30bn has been wiped off the value of the company.
Twitter did say that things were going to be rough for the next year or two in their last conference call, so things like this are to be expected. But I wonder if the negativity in that call actually made things worse, instead of being a bracing mechanism. I understand the inclination to warn people so they don’t go into a panic, still, I think they should have perhaps been slightly more sunny. That’s just my take on things, and I’m certainly no expert. Regardless, we’ll see how things go in the future, and I’ll continue to cover the ups and downs of the service here on the site. I know not all of you are fans of the Twitter madhouse, so feel free to rip on it below. I’m going to go type up some more news for this morning.
Also, we have a LIVE show tonight at 6PM EST. Join us for that if you’re able to make it. We’ll probably broadcast until around 9PM or so, and as always, the replay will be available afterwards.