Twitter Inc (NYSE: TWTR)
Twitter has been having a rough time in the market as of late, and it’s been happening for a very good reason. In fact, quite a while ago, I wrote an article stating that I wouldn’t be surprised if TWTR fell to $10 per share. At the time, everyone said I was crazy. The stock that was trading at over $25 per share simply couldn’t fall that far. However, it doesn’t look so crazy now. In fact, even the insiders in the company are selling the stock. Today, we’ll talk about the issues that Twitter has faced, the insider selling we’re seeing surrounding the stock, what we’re seeing in the market, and what we can expect to see moving forward. So, let’s get right to it…
TWTR Has Fallen Down A Very Bumpy Path
As mentioned above, Twitter has been struggling for quite some time now. The bottom line for the company is that it can’t seem to get new users in and keep them on as regular users. It’s actually kind of laughable at this point. I remember last year when the CFO came out and said that considering the views that Twitter posts get in news and other areas, it’s actually more popular than Facebook… hahahahaha! Anyway, Because of the fact that the company can’t seem to drive new users, the CEO was forced out of his position in early 2015. From there, Jack Dorsey, the co-founder of the company took the position, which of course, investors cheered about… wrong move!
The truth is, Jack Dorsey is no better than Dick Costolo. In fact, I believe that he is an even worse CEO of the company. When it comes down to it, Dorsey has a ton on his plate as the CEO of Square. So, it simply doesn’t make sense that he would be a strong CEO at TWTR, and it’s showing in his results. At this point, Dorsey has held the position for quite a while, and all he has done has made the experience better for advertisers, not users! So now, instead of seeing slow user growth, the company is seeing declines in daily active users. Of course, Dorsey isn’t trying to drive TWTR into the ground, but he isn’t helping to keep it above the surface either!
Insiders Are Selling!
With all of the issues that TWTR has been facing, several investors have decided to sell, leading the value of the stock downward. However, investors aren’t the only people selling. In fact, Twitter’s Chief Technology Officer, Adam Messinger recently offloaded 11,386 shares of his stake in the stock. The sale happened at a price of $16.73 per share for a total of $190,488.
What We’re Seeing From TWTR In The Market
At this point, investors are losing faith in TWTR, and for good reason. Let’s face it, a social network is nothing without users, and the company doesn’t seem focused enough to draw them in. As a result, we’ve seen decline after decline on their stock, driving it to the point it is today. Currently (11:22), Twitter is trading at $15.48 per share today after a loss of $0.43 or 2.70% thus far today.
What We Can Expect To See Moving Forward
The truth is, I’m not usually so negative. In fact, when companies get into turbulence, I’m usually the one saying that they are going to fight their way out and be just fine. However, in the case of TWTR, the management of the company doesn’t seem like it would be able to fight its way out of a wet paper bag. Dorsey is the wrong guy, users are starting to decline, and the company is in shambles. At the end of the day, TWTR needs a new CEO and a new plan for growth. Until that happens, I wouldn’t invest a dime into the company!
What Do You Think?
Where do you think TWTR is headed and why? Let us know your opinion in the comments below!