Twitter Inc. (NYSE:TWTR) Stock Hits an All-time Low

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By Ross Schwartz on December 10, 2014 Social Media

Twitter Inc. (NYSE:TWTR)’s stock slipped by 37 dollars in one day, owing to pathetic growth and low visitor engagement. This is the lowest the stock has dipped since the company’s low on 21^st July this year. Investors were satisfied with the revenue Twitter Inc. (NYSE:TWTR) accumulated in the second quarter but the third quarter has proved to be disastrous which has forced the investors on the market to term the stock as ‘junk’ because of the rising default risk.

Twitter Inc. (NYSE:TWTR)’s poor performance has led the company’s shareholders to dump the stock in a panic to avoid heavy losses. The reason behind Twitter Inc. (NYSE:TWTR)’s downfall is simple. It isn’t doing so badly when it comes to making progress on a steady pace, Facebook Inc. (NASDAQ:FB) lags behind Twitter Inc. (NYSE:TWTR) in that aspect. What Facebook Inc. (NASDAQ:FB) is doing better, is that it is getting more sign ups on a daily basis while Twitter Inc. (NYSE:TWTR) has failed to get that.

Twitter Inc. (NYSE:TWTR) so far has bagged 280 million users. It was expected to catch up with Facebook Inc. (NASDAQ:FB)’s 13 billion users with the passage of time, considering the initial boom it received. Twitter Inc. (NYSE:TWTR) didn’t manage to capitalize on that. Twitter Inc. (NYSE:TWTR)’s losses are caused by hiking expenses, along with major operating losses. The money raised by Twitter Inc. (NYSE:TWTR) through stock offerings and debt has been swept away by the losses incurred.

Investment bankers, usual investors, traders- everyone on the stock market are turning their backs on Twitter Inc. (NYSE:TWTR), calling the stock worthless because of its inability to grow. Hedge fund managers are calling Twitter Inc. (NYSE:TWTR)’s stock ‘speculative junk’ because the company dropped down from a prize of 75 dollars in December 2013. These fund managers think that there is still a flipside to the stock as it isn’t trading for a fair price at the moment.

The stream of losses won’t stop, as far as investors are concerned. They think that the operating losses will continue to show up and burn their money. That is why investors are refraining from investing in Twitter Inc. (NYSE:TWTR)’s stock. This could come really hard on Twitter Inc. (NYSE:TWTR) if it can’t manage to attract investors to spend in its stock, the company’s stock might grow stale; that is unless it miraculously turns over and starts going.

Twitter Inc. (NYSE:TWTR) will have to cut down on its losses and increase visitor engagement. Twitter Inc. (NYSE:TWTR)’s downfall has been going on for a long time- almost a year- to be precise. It’s high time for Twitter Inc. (NYSE:TWTR) to turn it around and post a quarter that proves something positive about the company. The only way to regain investors would be to show them that the company is capable of moving forward in a positive direction. Twitter Inc. (NYSE:TWTR) has the potential; it just needs to take the right steps to regain the faith of the shareholders and the general public.