Twitter shares fall below IPO price

GMT 19:46 2015 Thursday ,20 August

Arab Today, arab today Twitter shares fall below IPO price

Twitter stock
New York - AFP

Twitter shares sank to an all-time low Thursday, crashing below the level of its initial public offering in 2013, as growth concerns intensified over the one-to-many messaging platform.

In afternoon trade, Twitter sank as low as $25.92, a drop of six percent, falling for the first time below the $26 level of its November 2013 IPO, amid a steep drop in the overall US stock market.

Twitter stock hit highs in late 2013 above $70 on euphoria over the IPO but have been dogged by concerns on sluggish growth and a lack of profitability.

Last month, Twitter said its user base grew to 316 million worldwide, up by just two million from the prior quarter with the number of US users flat. Twitter co-founder Jack Dorsey has assumed the role of interim chief executive as the company seeks a new leader.

A study this week by Pew Research Center found Twitter has failed to keep apace with rivals like Instagram and Pinterest.

The Pew report found 72 percent of Americans who are online currently use Facebook, while Twitter's share remained stuck at last year's level of 23 percent. Meanwhile Instagram and Pinterest gained members.

Twitter, which lost $137 million in the recently ended quarter, has never posted a profit.


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