Social media giant Twitter gave investors a rude shock, when shares of the company dropped well below 5% in yesterday’s round of midday selling and buying. The shares, which saw the day start with a price of about $31 each, dropped down well below the $30 comfort-line and at the time of penning this article had dropped 5.68% and were dangerously close to Twitter’s Initial Public Offering (IPO) price of $26.
The current equity values are even more important when you look at them in perspective of Twitter’s stock graph ever since it’s IPO went Live, where the company saw it’s shares receive more than their fair share of adoration from investors with stock values rising to nearly $70 in 2014.
However, the company had a massive setback with stock values dropping down into thirties. What’s more, every time an earning report comes out, the stocks decline even further with the second quarter earnings report this year, seeing an all time low of $28.91 (as per media reports).
Also, the fact that quite a lot of stock sale has been going on doesn’t do much to help as even those calling the shots at the company, are selling equity in massive amounts. Such as Ev Williams, who managed to sell $275,037,833 worth of stock — that included a clever, 468,000 share sale in April with each stock going for $51 — in just one year.
Such setbacks and comebacks have become almost a habit with the company, which saw its stock value practically dancing around, going from very high, to very low to high again over the past couple of years.
However, things are looking a bit more serious now as the absence of a permanent CEO along with concerns over user growth — and user growth has everyone concerned with the monthly active user count, which recorded a meagre, 15% growth — has the shares on a downward spiral. The fact that dropping share values lead to declining employee morale and hinder a company’s ability to hire, all add up to hurt growth further.
Well, the company has pulled back in the past, and we are sure that all the bigwigs over at the Twitter corporation are frantically devising ways to anchor the company. However, as of now, the shares are at $29.25, down 5.68% as everyone awaits the opening of the next business day.