The stock price of Twitter Inc(TWTR) has fallen by over 20% today. This is an enormous fall and is a huge setback for the company. The stock closed at $24.87 on Wednesday and has gone down by over 20% till the late morning trading session today.
The San Francisco based company is an online social networking service that enables users to send and read short 140-character messages called “tweets”. Registered users can read and post tweets, but those who are unregistered can only read them. Users access Twitter through the website interface, SMS or mobile device app. Twitter Inc. and has more than 25 offices around the world.
This fall is linked to the decision of three major companies that would likely not purchase the social media company. Google, which trades under holding company Alphabet, does not plan to make a bid for Twitter, according to sources close to the situation. Apple was unlikely to be a possible bidder, according to several sources. And after considering one, Disney is not going to make an offer, according to sources familiar with the company,
That should tamp down the frenzied speculation around a possible Twitter sale since Salesforce began no-commenting noisily with regard to possible interest in acquiring it a few weeks ago. The news set in motion a series of ever more breathless reports of bankers being hired and a bidding process being started. Much of this is due to said bankers trying to gin up excitement around a sale of Twitter, creating as much interest as possible to spike up the price. After all, it can’t be just Salesforce’s Marc Benioff running around flashing wads of cash.
Jack Dorsey, the Twitter co-founder who returned to the company as CEO last year, is putting Twitter up for sale after spending the last year trying, and failing, to get the company growing again. Twitter’s most recent quarterly results show the number of monthly active users growing a paltry 1 percent over the previous quarter.
Am analyst source said that the basic problem is that Wall Street investors bought into Twitter’s 2013 initial public offering expecting to get a fast-growing tech company like Facebook or Google. Instead, Twitter’s growth has stalled. So over the past 18 months, Twitter’s stock price has crashed as it’s become increasingly clear that Twitter – though large and reasonably lucrative – is never going to achieve a Facebook-like size of audience or profitability.
Our analysts have given a “HOLD” rating to Twitter’s stock. Under very rare circumstances does one advice to sell the stocks after a fall this big and this is not that circumstance. All current holders of this stock are advised not to sell it. Buying the stock at this stage in not advised.