Twitter Still Pushing New 52 Week-Lows
Twitter (TWTR) shareholders are unable to catch a break. Just when it looks like the stock has tanked to a new 12 month low, surprise it happens again.
TWTR shares are almost at its IPO price. This past week was yet another 12% decline for the stock. Make that a 22% drop for the past 30 days and a 44% decline in the past 6 months. The bears and shorts are tearing this company apart.
Who is going to run the company long term? Will they ever grow their user base? These two questions have killed the stock and the Street can't stand the stock.
Twitter is making money the company reported $502 million in revenue in Q2 2015. Advertising sales jumped 62% year over year to $452 million. Nobody cared.
These social media stocks or Netflix's of the world only care about users/subscribers. Twitter missed again. TWTR had 304 million monthly active users in the quarter. That marked an increase of 2 million from the previous quarter and came in below expectations of 310 million. Down the stock goes.
Twitter co-founder and Square CEO Jack Dorsey currently leads the company and we have no idea who will fill those shoes on a permanent basis.
The short interest on TWTR is only 4.78% of the float according to finviz.com. The short interest is 4.68% at ShortSqueeze.com and they show a 15% increase from last month. The chart looks terrible on TWTR a complete falling knife.
At some point, near the IPO price we may see a bounce. Any good news about leadership or growing users could boost the stock. I doubt someone like Google (GOOG) or Apple (AAPL) will buy Twitter, that should have happened by now.
What could be good come Monday for the stock is Bloomberg reported that Dorsey may be Twitter's next CEO.
Advisers working on Square's IPO - the company is believed to have confidentially filed - are "making preparations" for the possibility Square CEO/Twitter interim CEO Jack Dorsey will leave Square to become Twitter's permanent CEO.
Bottom line: Twitter is getting killed on headlines and disappointing the Street on a consistent basis. With the stock near the IPO price of $26 and good news could send shares up on short notice. However without any thing concrete expect TWTR to trade lower.
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