Twitter shares tumble back to IPO price

Downward spiral: Twitter shares have plummeted to its lowest price, below even its IPO price.

NEW YORK: Twitter shares sank to an all-time low Aug 20 before closing at their initial public offering price from 2013, as growth concerns intensified over the one-to-many messaging platform. 

The shares sank as low as US$25.92 (RM108.83), falling for the first time below the US$26 (RM109.16) level of Twitter’s November 2013 IPO. 

At the close, Twitter ended at US$26 (RM109.16) exactly, a drop of 5.8%, amid a broad selloff in the overall US stock market. 

Twitter stock vaulted to highs in late 2013 above US$70 (RM293.89) on euphoria over the IPO but the company has 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 Centre found Twitter has failed to keep apace with rivals like Instagram and Pinterest. 

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

Twitter, which lost US$137mil (RM564.60mil) in the recently ended quarter, has never posted a profit. — AFP