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Twitter Fails to Impress User Cause Stock Hits New Low

Twitter is now undergoing a fast downfall of its sales after users became unsatisfied. This resulted to from sliding of the new low of stocks which they had to face a problem with their investors who are starting to lose their patience.

 

This will be a hard time for the company after the shares sank to almost 9% within an hour of trading last Tuesday. It only follows the disappointing first-quarter results from Twitter Company.

 

Despite the increase of active-user base which hits 255 million as of last month, still it doesn’t count a lot. It is only 6% growth compared to the last quarter which is not really a record breaking pace for the investors.

 

During the first quarter, Twitter booked $250 million in sales but it didn’t gain enough, losing $132 million. Twitter only expects a modest rise of its sales between $270 million and $280 million in the present quarter. This is according to the analyst’s expectations but investors still want more than that.

 

Since the start of 2014, Twitter has been a part of the biggest loser for tech stocks in the market. Twitter even became the second-worst performer in CNNMoney’s Tech 30 index.

 

The company tries to roll out a new feature to make its service more appealing to ordinary users but out of five people in the U.S only one person regularly visit Twitter. It’s nothing compared to half of U.S population on Facebook.

 

Today’s earning calls Twitter announcement that they still have no plan to host a secondary offering of its shares just to take in consideration the large shareholders and new investors. The company still tries to seek solution to this new low but they wanted to stand on their own. There is no need for an orderly secondary offering to handle the vend. All they have to do is trust the “long-term” health of the company.