Shares have fallen 27% in the last month and 29% in the last three months.
The rapidly declining share price of Twitter has swooped lower than its IPO price of $26 – a new nadir for the troubled social network.
Twitter was down 5.9 percent at $25.97 at 2:34 p.m.in New York amid a general market selloff. The S&P 500, Dow Jones Industrial Average, and Nasdaq all saw declines, pushed lower by uncertainty over the timing of an interest rate hike by the Federal Reserve, China’s economic slowdown, and volatility in oil prices.
When Twitter reported earnings on July 28, Dorsey and Chief Financial Officer Anthony Noto struck a critical tone, saying user growth won’t improve until the service boosts its appeal to a bigger market and that product improvements and marketing so far have met with minimal success.
Last month, Mr Dorsey has said he wasn’t “satisfied” with the company’s user growth.
In addition, Twitter is also without a permanent CEO, although co-founder Jack Dorsey is at the helm on an interim basis.
Twitter Inc. The stock soared more than 70 percent on the first day of trading to close at $44.90 a share, up from the initial pricing of $26 set ahead of its debut.
Shares lost almost 20 percent at the end of the trading day after earnings were leaked and management cut guidance. Even before the IPO, Costolo faced pressure as expectations mounted for the social networking giant to generate high user growth.
Since then, the company has faced tough shareholder questions about slowing user growth. CBS (CBS) finished the day at $46.03, a drop of 5.1%.