Shares have plunged since company leaders said Twitter is in 'turnaround' mode
Apparently, the weekend wasn’t long enough for investors to forget about last week’s Twitter earnings call.
Shares of the social networking company plunged again on Monday, falling to their lowest point since the company went public in November 2014. Twitter’s stock was recently down roughly $2, or more than 6%, and had fallen below $30 for the first time in over a year. Twitter’s shares briefly touched a low of $28.91, which is as low as the stock has gone since pricing its IPO shares at $26 apiece (though, the company finished its first day of trading at nearly $45).
The market continues to react negatively to last week’s earnings call, where Twitter’s interim CEO, Jack Dorsey, said that Twitter has not done enough to make the platform easier to use and added that attempts to spur user growth have stalled. Chief financial officer Anthony Noto said the company is in “turnaround” and that efforts to ignite user growth could take “considerable” time.
Those remarks sent Twitter’s shares plummeting during after-hours trading last Tuesday, with the stock opening Thursday nearly $4 below where it had closed Wednesday afternoon. The drop actually followed a brief spike in Twitter’s after-hours share price that was brought about by Tuesday’s report of higher-than-expected second-quarter revenue.
Twitter reported a surprising 61% bump in second-quarter revenue last week, helped by a strong advertising business, but profitability still eludes the tech company. Meanwhile, as Fortune’s Erin Griffith pointed out last week, Twitter’s primary obstacle is sluggish user growth and the company’s leadership doesn’t sound too confident that they can wipe out that problem anytime soon.