Is Twitter stock hitting a rock bottom soon?

Twitter is a famous tool to share your trash thoughts in 140 words.  Once revolutionary social network, now it barely shows signs of life and so does the company’s stock. The horrible management and lack of insightful strategic guidance have turned Twitter into a fucking pig on LSD.

Many people wonder where the Twitter stock might head further. That’s why we suggest taking a closer look at Twitter stocks investment.

First things looked good

In November 2013, Twitter has gone public on NYSE with the stock price of $26 per share. Just the day after IPO, Twitter shares skyrocketed to $50.09. Then 1 month later, the Twitter stock peaked at the all time high of $72.88. per share.  Indeed, investors back then did not see the big shit looming.

Ridiculously overpriced IPO backfired and in 2 months Twitter shares started declining. The downward movement has been consistent so far, with just a few dead cat bounces on the way.

Current performance of TWTR

Now the stock is worth merely 15.92 bucks. The reason why TWTR is actually heading to the bottom lies in the incapability of management to improve its core product. Almost zero user growth and lack of spending from advertisers decrease the value of the stock. However, let’s look at some numbers.

If you think that Snap is a fucking disaster, think again. Twitter has just $11.91 bln in the market capitalization, which is $4 bln less than Snap. In its latest Q2 earnings report, Twitter reported the lower number of monthly active users as expected by Wall Street analysts. Also, advertising revenues have fallen even more in comparison to the last year – from $535 mln to $489 mln. Considering that Instagram and Facebook prove to be more attractive platforms for advertisers, no surprise that TWTR is losing the competition here. As for EPS, it is $0.12 cents, which is a bit higher than $0.05 expected. Lastly, Twitter made $574 mln in the revenues. Again, slightly exceeding previous expectations.

Is there any sense to invest in Twitter shares?

As we said earlier, Twitter does not deliver any kind of innovation. The only thing that can be mentioned is that Twitter introduced its new live streaming app in 2015 – Periscope. This was an attempt to add more value to the company. Eventually, all the hype about this shitty app died just in a year. Additionally, the company also developed a less data-intensive version of Twitter called Twitter Lite, available using the mobile browser. It is supposed to enhance the accessibility to the platform for low-data regions. It’s good that Twitter cares about such regions, but it’s definitely not enough to ensure a decent user growth.

Twitter stock shows no sign of improvement. It is unlikely that the corporation has any long term plans to recover from losses and make an impressive comeback like Netflix. Considering all mentioned above, we believe that Twitter stock price with its current vector of development is going to hit the all time low of $10 per share very soon.  Investing in Twitter does not really look as the bright idea.

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