iBankCoin

Twitter Guides Lower; Stock Plunges, Because They Suck

This has to be the single most dysfunctional tech stock on the planet. No wonder why Fred Wilson sold his shares to the ordinary folk. These guys running Twitter are animals.

Revenue will be $695 million to $710 million, the San Francisco-based company said in a statement Tuesday. That compares with analysts’ average projection for $741.6 million, according to data compiled by Bloomberg.

In the third quarter, when Dorsey was still interim chief, the company’s user base grew 11 percent to 320 million, compared with a forecast for 324 million and growth of 15 percent in the prior period. In the U.S., the world’s largest advertising market, Twitter’s user count remained flat at 66 million.

“The lack of meaningful user growth will clearly be a long-term challenge for Jack Dorsey and his team,” Sweeney said.

Twitter shares slumped to $27.69 in extended trading, after rising 1.5 percent to $31.34 at the close in New York. The stock has slipped 13 percent so far this year.

I am long the stock in pretty decent size. The drop in the after-hours, all but wipes out my recent gains and places me in a position to really, really, ardently hate on the dick-smokers running TWTR into the dirt.

Granted,  Jack is now running the company and perhaps he can turn the ship around. But the crux of the issue with Twitter is the lack of new user momentum. Friends and family that I know think Twitter is the dumbest thing ever. Frankly, if you don’t have a defined genre of people worth following, like us in finance, Twitter is one of the most inane concepts to have ever been created.

Finance and news is where Twitter’s true value is. Management should circle the wagons around that and make this thing into a Facebook-like cash cow.

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19 comments

  1. t.c.

    Let’s Go Mets!

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  2. kasparov

    I’m worried $TWTR already blew it, forever. They can’t really differentiate themselves on news anymore, since $FB is just as relevant for news now. (Arguably more, since their audience is orders of magnitude larger.)

    I guess they could try to focus on Finance. But even then, how far would that get them?

    I love how @jack made developers a priority. And donating $200m to the employee compensation slush fund is impressive. But it feels like too little too late. They had their chance, and the world has passed them by. Like YHOO, I think they’re circling the drain at this point.

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  3. jersey whale

    Does it bother you that the ceo is splitting time with another company?

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  4. Dr. Fly

    yes, he needs to quit square

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  5. wolfdaddy

    Jack will be out of square soon after the ipo. I still believe dick did a great job and the bod is toxic. Good luck to jack

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  6. frog2

    idk if this is a contrarion indicator but

    fb is getting into the search game. nobody thought anything could replace google but fb has amazing app engineers and lots of people are searching for local news on fb now

    celebs are using instagram more like they were using twitter. but with pics

    twitter is still the go to for news. but boring news and thats it

    so is this discouragement = a buy? or is twtr gonna fade. a few years ago you couldnt convince me that there would never be a twitter. but all these fuck ups are doing a good job of coming close

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  7. vampyr

    I know why people can’t warm to $TWTR. Fear of rejection; if I Tweet and no one responds then I don’t matter; maybe I don’t even exist. Maybe I’ll give an opinion and someone will call me a bad name or worse…….someone might call me stupid. Yes, I might find out that I’m stupid. And the whole point of $TWTR is to have a conversation and get a virtual pat on the head, isn’t it?

    MySpace broke the ice for FB to be all warm and fuzzy (ironic I know) with co-workers, friends, relatives, stalkers, advertisers and other really annoying and craven entities.

    The solution is that $TWTR needs to stop treating humans well. If Dorsey believes his product is for the good of the humankind then it will die.

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  8. gappingandyapping
    gappingandyapping

    Twitter is also very big in the infosec community, again news and information related.

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  9. geezer

    They should acquire stocktwits! I`m serious!

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  10. Earl

    Apparently they’re running a spot on the World Series
    http://www.theverge.com/2015/10/27/9618630/twitter-tv-ad-chiat-day

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  11. the dude

    It doesn’t matter what Jack Dorsey does. Sorry, curating the 1% of Tweets that are useful isn’t going to monetize.

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  12. stockslueth

    Twitter is becoming an irrelevant social media channel. I’m just going to cut my losses and roll it into something working.

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  13. typebtrading

    ##

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  14. sia

    I feel like this is going to be another stock that tortures longs for a long time until it actually has some life to it… if ever.

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  15. zuul4

    I was into twitter for a couple years, then I realized that most of the info I already got from Bloomberg and I hated all the “finance personalities” [except for Fly].

    I mean, @munilass? Horrible, conceited person.

    @groditi? Horrible, conceited person. Spends his entire life tweeting his life. Not interested.

    There are some on there worth following, but not enough to keep me interested. A while ago I realized that the only thing I was going to twitter for was to read Fly’s tweets and to tweet something that others would respond too. That’s about when I stopped.

    Great vehicle for getting breaking headlines, that’s about it.

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