Social networks have become an extraordinarily important aspect of Millennials’ digital lives. It does not come as a surprise that tons of new innovative social apps such as Instagram and Snapchat are sweeping the social digital scene in an unprecedented way. Social media have essentially paved the way for people to connect about personal matters and innovative business models are exploiting the usage of social media for monetization purposes. It is thus interesting to see how this social culture unfolds even more. However, not everyone is excited as some companies are struggling to stay in the game. One of them is Twitter, an online social networking service that enables users to send and read short messages. In today’s Feature Friday article, let’s tweet about Twitter’s past and future!
Twitter stock is tanking while its board is having a big meeting about the company’s future (09/09/2016)
Has the appointed time arrived for Twitter to be sold off? A huge wave of speculation is surging again in Wall Street, Upon the merest whisper of a possible sale, Twitter stock has hit a bull run earlier in the week before plunging more than 6% in midday trading yesterday. The stock experienced a sudden drop while its board was having a meeting to discuss the urgency of cutting costs to revive its stalled growth. Plot twist: There weren’t even any bids placed on the table for the acquisition of Twitter.
Here’s Why Twitter Stock Is Down Almost 6 Percent (09/09/2016)
On top of cost cutting, the board is trying to keep CEO Jack Dorsey for at least a few more quarters to set things right in Twitter. Some of the measures on Twitter’s to-do list include: Making the service more user-friendly for newbies, commerce-friendly and popularizing video ads for higher profit. Regarding the issue of not having any bidders, Pivotal Research Group analyst Brian Wieser is confident that there are potential bidders who are out there who have the financial capacity to acquire Twitter, by giving reference to Microsoft’s purchase of LinkedIn for $26 billion in June.
Twitter shares drop as pressure for growth mounts (09/09/2016)
Twitter closed at $18.70 on Thursday, after losing $1.17 in equity value. Twitter’s most recent quarterly earnings report showed that it lost US$107 million but the number of monthly active users surged to 313 million, up 3% from a year ago. Revenue rose 20% from a year earlier to US$602 million, but still lagged behind expectations. Alas with the decent business figures, Twitter has never posted a profit since 2013, and Jack Dorsey is struggling to catch up with this fast-growing pace of social media. Twitter stock has lost two thirds of its value since hitting a historic peak a few weeks after making its debut on Wall Street in Nov 2013 at an IPO price of US$26.
If Twitter fails to initiate drastic changes in management and business model, we will most likely to see the downfall of Twitter.