The shares of Twitter Inc (NYSE:TWTR) traded as low as $25.92 a piece, below its $26 initial public offering price today. The stock eventually closed at $26 per share, down by 5.83%.
Twitter’s stock price declined from its highest level of $55.99 per share over the past 52 weeks. The microblogging company lost almost 42% of stock value over the past year.
In fact, the Twitter suffered significant losses over the past three weeks since reporting its financial results for the second quarter that disappointed investors. On July 28 alone, the company lost 10% of stock value.
Investors’ concerns mount over Twitter user growth
Investors are becoming more concern regarding the growth prospects of Twitter since its CFO Anthony warned that the company will not be able to achieve a “sustained, meaningful user growth for a considerable period.
Twitter co-founder and interim CEO Jack Dorsey admitted that they were not satisfied with the company user growth. According to him, they need to improve three primary areas to realize the full potential of the company. Dorsey said they need to ensure more disciplined execution, simplify service to deliver Twitters value faster, and better communicate that value.
Twitter needs to find a new CEO urgently
Additionally, investors are also worried about the company’s search for a new CEO since it is uncertain whether Dorsey is interested to become its permanent leader. Dorsey also serves as CEO of Square, a credit card processing and business solutions startup, which is preparing for an IPO. He owns 25% stake in Square.
Market observers suggested that Twitter is currently in a difficult position with an urgent need to find a permanent CEO to replace Dorsey.
The board of directors of Twitter is planning to reorganization that includes the departure of former CEO Dick Costolo, according to Bloomberg based on information familiar with the matter.
The people said the Board will announce the changes at the same time when a permanent CEO has been selected.
Meanwhile, Twitter legal counsel Vijaya Gadde discussed the company’s efforts in maintaining users’ privacy and preventing any form of online harassment during an interview with a Kara Swisher and Walt Mossberg of Re/code.
According to Gadde, they are working hard to maintain users’ privacy. Twitter was reportedly “fending off” government requests to access certain information about users.