Twitter shares have sunk below the company’s initial public offering price of $26 after weeks of tumbling downwards.
The close of Thursday set a new record low for the company at exactly $26, which is what it was in November 2013. In its last hours it tanked 6 percent, according to USA Today.
When the company went public in November 2013, its first day closing price hit $44.90. After that, within only a month, the company soared up to $73.71 in December. But the social networking site is at an ultimate low.
A few weeks prior to its heavy drop, the company reported very low second-quarter earnings and their slowest user growth rate since they went public in 2013. It’s second-quarter had 304 million core users reported which meant they were completely stagnant as their first quarter reported 302 million users. In comparison to other social networking sites, they pale in comparison. Facebook has a record 1.5 billion users.
Interim CEO Jack Dorsey and Chief Financial Officer Anthony Noto have been transparent, some say too much, by letting their investors know that a turnaround would take “considerable” time for the company.
Expectations have dropped across the board including Wall Street who’s expectations have consistently deflated along with the company’s stock. Dorsey made an attempt to pump things up last week when he showed a bid of confidence in the company and bought more than 31,000 shares of Twitter which very briefly rebounded the stock. But other than that spike, the stock has been dangling around $26 for weeks.
The company’s CEO stepped down on July 1 after pressures from Wall Street hit home and since then, Twitter has been in search of a replacement, with Jack Dorsey filling in as interim CEO until the position is filled.