Twitter stock slumps to all-time low

Twitter‘s stock is trading at unusually high volume Monday with 28.5 million shares changing hands.

The shares, which saw the day start with a price of about $31 each, dropped down well below the $30 comfort-line and at the time of penning this article had dropped 5.68% and were dangerously close to Twitter’s Initial Public Offering (IPO) price of $26.

It was November 2013 and most of America was so jealous because they didn’t have $26 to buy a single share in that infernal blue bird taking up all of our free time.

Twitter shares are now worth $29.25 each, according to AFP via Yahoo!

Twitter was another huge social media decliner during the week on the back of the company providing a negative forward guidance and reporting a no growth in the user base which was seen as a huge negative by traders and investors.

Last week, Twitter posted second-quarter earnings and revenue that topped expectations, but monthly active user growth that fell below estimates.

During the conference call, Dorsey said that the user growth numbers were nowhere near the target and deemed the number as unacceptable for a company like Twitter, a clear warning sign for investors who used the opportunity to dump the stock. “We realize it will take a lot of time”.

Analysts at SunTrust attributed the sharp drop to jitters stemming from the departures of two product executives, and worries surrounding the ongoing search for a new chief executive following Dick Costolo’s decision to step down in June.