Twit­ter shares tum­ble back to IPO price level

The China Post - - WORLD BUSINESS -

Twit­ter shares sank to an all­time low Thurs­day be­fore clos­ing at their ini­tial public of­fer­ing price from 2013, as growth con­cerns in­ten­si­fied over the one-to-many mes­sag­ing plat­form.

The shares sank as low as US$25.92, fall­ing for the first time be­low the US$26 level of Twit­ter’s Novem­ber 2013 IPO.

At the close, Twit­ter ended at US$26 ex­actly, a drop of 5.8 per­cent, amid a broad sell­off in the over­all U.S. stock mar­ket.

Twit­ter stock vaulted to highs in late 2013 above US$70 on eu­pho­ria over the IPO but the com­pany has been dogged by con­cerns on slug­gish growth and a lack of prof­itabil­ity.

Last month,

Twit­ter

said

its user base grew to 316 mil­lion world­wide, up by just two mil­lion from the prior quar­ter with the num­ber of U.S. users flat. Twit­ter co-founder Jack Dorsey has as­sumed the role of in­terim chief ex­ec­u­tive as the com­pany seeks a new leader.

A study this week by Pew Re­search Cen­ter found Twit­ter has failed to keep apace with ri­vals like In­sta­gram and Pin­ter­est.

The Pew re­port found 72 per­cent of Amer­i­cans who are online cur­rently use Face­book, while Twit­ter’s share re­mained stuck at last year’s level of 23 per­cent. Mean­while In­sta­gram and Pin­ter­est gained mem­bers.

Twit­ter, which lost US$137 mil­lion in the re­cently ended quar­ter, has never posted a profit.

AP

In this July 28 file photo, the logo for Twit­ter adorns a phone post on the floor of the New York Stock Ex­change.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.