The stock price of Twitter is plummeting again today.The stock of the company was trading $28.93 per share, down by 6.71% at the time of this writing around 2:00 in the afternoon in New York. There is no major news that could be point as the reason for the decline today.
Possible reasons for Twitter’s (TWTR) stock decline
Some market observers suggest that Twitter shares are declining as investors may be losing confidence in the company’s future following the warning of its CFO Anthony Noto regarding its user growth.
During the company’s earnings call last week, Noto warned that Twitter will not be able to achieve a sustained, meaningful user growth for a considerable period.
Twitter reported that its average monthly active users (MAUs) excluding SMS Fast Followers increased 12% to 304 million in the second quarter.
Twitter’s interim CEO Jack Dorsey also stated that the company hasn’t done enough to improve its platform to provide a better experience to users. He added that the company’s efforts to boost user growth had been stalled.
The stock price of Twitter tanked after the executives made their comments last week. It is obvious that investors haven’t forgotten those disappointing remarks, and they probably think that the management doesn’t have enough confidence to resolve the problem.
Meanwhile, RBC analysts recently issued a Neutral rating for the shares of Twitter based two factors. They are uncertain whether Twitter’s product changes and UI could help boost its user growth. They also concerned on the company platform as lacking “real-time commercial intent.” They also noted that only a few advertisers are attracted to the platform based on a channel checks and survey.
Twitter (TWTR) executive departures
A recent report indicated that Twitter lost two executives. Todd Jackson, former director of product management, resigned to join Dropbox. Christian Oestline, the former head of growth is leaving Twitter to join YouTube.
Dick Costolo stepped down from his position as CEO on July 1. Since his departure, Twitter lost $13 billion in market capitalization. The company’s market capitalization is approximately $19.7 billion.
The company’s Search Committee is looking for executives who can make a full-time commitment to serve as a permanent CEO.