Twitter seems to be losing the confidence of ardent believers such as Chris Sacca, who once said that he would defend the stock like one of his children, according to Business Insider. It appears from a series of tweets Sacca made on Tuesday that he has shed all his stake in Twitter.
Sacca no longer interested in Twitter
In contrast, last month, CEO and co-founder Jack Dorsey revealed that he had bought $7 million worth of Twitter’s stock. Picking up those shares means that Dosey has faith in the company and believes that it is undervalued.
However, Sacca, who has stakes in Uber and Instagram, differs from Dorsey, and apparently is no longer sure about Twitter’s future. The billionaire venture capitalist tweeted to his 1.8 million followers that his fund parted ways with Twitter after Dorsey was brought back to the helm in October 2015, and then, he sold his personal stakes in the fall of 2016.
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“When they failed to get Ev (Evan Williams) involved again, I lost hope. Love the service, hate the stock,” he tweeted.
Sacca also mentioned that it had been a couple of years since he did not hold any stock position in Twitter.
In an interview with Bloomberg in October, Sacca said he did not hold as many shares in the company as he used to “because I’m not an idiot, but I [still] own more than I should because I’m an idiot.” In May 2015, Sacca was hopeful that Twitter could evolve and have a user base of over 500 million. At the time, the platform had around 302 million users, and now two years later, the number inched to 319 million monthly users last quarter.
Twitter has to blame itself
Though Sacca is not the only one to express disenchantment with the micro-blogging firm, his exit will be felt deeply, as he was an ardent supporter of the platform. Twitter stock has dropped by about 80% from its post-IPO high in 2013.
Twitter has itself to blame for its plight. The platform has been unable to capitalize on the recent hype it got during the elections. And recently, it got its most powerful user in President Donald Trump. During the campaigns, the platform was like a daily news cycle, flooded with Trump tweets. But even Trump’s excessive use of the platform has not helped the company’s bottom line.
On Tuesday, Twitter shares closed up 0.72% at $15.32. Year to date, the stock is down more than 6%, while in the last year, it is down almost 9%.