Continuous growth related issues and the recent announcement of extension of tweet limits to 10,000 characters seems to have taken a heavy toll, not only on Twitter’s social ranking but also on its stock prices. According to reports, the company’s stock prices have hit a new low, breaking the previous record of $23.31 price point.
Twitter’s stock prices experienced a 14% drop in stock value to take the tally to a new low of $19.98. This recent downward trend in its stock prices brought the company’s net worth value to $13 billion price point. And considering the fact that Facebook has recently acquired the popular instant messaging app i.e. WhatsApp for $22 million puts things in better perspective.
In recent times, the company’s policy has constantly been on the firing line, be it for its growth-related concerns or for announcing the new tweet limit of 10,000 characters. Both these factors had a major impact on its stock prices, which experienced a much greater fall than other tech companies.
Off-late, Twitter’s slow user growth rate has been a major concern for the second-ranked social networking site; although it still boasts of a healthy 320 million monthly active subscribers. This may be an achievement of sorts but it isn’t enough to challenge the No.1 ranked social networking site i.e. Facebook, which is way ahead in the competition and is sitting pretty with 1.5 billion monthly active users.
Despite Twitter doing everything possible to get ahead of its immediate competitor, which includes changing its ‘favorites’ to ‘likes’ and even adding a new feature called Moments, it wasn’t able to extend its active subscriber tally.
At present, Twitter is plagued with the challenge of killing two birds in one throw, which includes improving the performance of its trending stock prices and getting more users onboard. To accomplish that feat in a hurry, the company needs to do more than just add/modify features on its dashboard.
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