What the Hell Is Going on With Twitter?
Sometimes it’s difficult to see the warning signs of a company in peril, but with the recent happenings surrounding Twitter (NASDAQ:TWTR), the panic is written on the wall. The company said that its chief operating officer Ali Rowghani has resigned from the position, but will continue on as an adviser to the CEO, Dick Costolo. The Associated Press reports Twitter has no plans to replace Rowghani, and will instead delegate his responsibilities among other executives. No reason was given for his resignation.
This is only one slice of recent bad news for Twitter, which has been struggling uphill since the beginning of the year. The social media giant lost roughly $4 billion in market value over the past month, according to Wired, after many employees opted to sell off stock following a lock-up period expired six months after the company’s initial public offering. Overall, its market value has shriveled to half of the initial $18 billion evaluation and its user base has stagnated significantly. In fact, 90 percent of the platform’s content is produced by the top 10 percent of users.
Shareholders have obviously not been happy, which has been part of the reason so many under Twitter’s employee have chosen to sell off their holdings after the initial lock-up expired. For outside shareholders, the moves made by internal sources have not inspired confidence. On the first day after expiration, share price dropped 18 percent, says SFGate. To put things into perspective, the company’s share price once soared as high as $74.73, and as of this week, shares are currently valued at about half of that figure.