Can Twitter Stock Rise Again?
Twitter Inc (NYSE:TWTR) was down 3.7% on Monday as questions still persist as to whether Twitter stock can pick itself back up in the long run.
Twitter stock has seen a sharp decline in its value since the beginning of 2016; down 18%. Twitter investors will be looking forward to having this year behind them. But the nagging question that lingers is whether TWTR stock will be able to rebound from a multi-year decline.
Take some of the recent shakeups in the business. Keith Coleman is Twitter’s fourth VP of Product since 2013. That’s a lot of changeover in a short span of time. The pressure is on for him to perform where others have lagged behind, sure, but the general optics do not bode well for Twitter stock enthusiasts. Constant change is in opposition to stability, after all. (Source: “TWTR Stock: Twitter Inc May Be Running Out Of Time,” Amigobulls, December 9, 2016.)
You also have Twitter stock’s rather stagnant growth. The second quarter of this year was a boon to the company, with a 20% growth in revenue to reach $602.0 million. But it was unable to build on that momentum, as Q3 flagged with only $616.0 million generated, only about 8.2% higher than Q3 in 2015.
And then there’s Twitter stock’s foray into live streaming and other areas of expansion where it, of course, faces heavy competition from dynamos like Facebook Inc (NASDAQ:FB), which have been on the forefront of social media live streaming for a good while now.
And these aren’t the only plagues on Twitter stock’s house. The user-interface has long been bemoaned, harassment on the platform has only increased in media attention, and controversy has followed the company over who it chooses to ban from using its site and who it allows to remain active. (Source: “Twitter U-turns over banning white nationalist,” The Guardian, December 12, 2016.)
But a big benefit of 2016 for Twitter stock? The incoming president seems to love the platform.