After its quarterly revenue results were leaked one hour before the close of trading, Twitter’s stock value has dropped significantly. At first it was believed that it was Selerity who had leaked the information, but it appears that it was not the culprit after all.
Selerity is a financial analytics firm that Twitter was working with and they have been blamed until recently for this leak. Hacking has been suspected to have lead to the embarrassing situation, but Selerity itself clarified that it was not the case.
It was actually The Nasdaq stock market who accidentally posted Twitter’s quarterly results for a few seconds. “We inadvertently released an early version of [Twitter’s] earnings,”, The Nasdaq admitted.
But regardless of this incident, it looks like Twitter is in trouble. Leaked or not, the results were no good this quarter, ending up below Wall Street expectations. The company’s total earnings this year until March 31st were of only $436 million, which is well below the $456.5 million that financial analysts had predicted.
And since this information was made public one hour before the close of trading, Twitter’s stock plummeted 26pc on Tuesday night and then a further 5pc on Wednesday.
So things are not looking good for Twitter, which has been experiencing serious problems attracting new users. Ironically, the number of people who have used their services at least once a month in 2015’s first quarter was one of the few numbers that has actually gone up, reaching 302 million, from 288 million from last December.
Unfortunately, this was not enough to save Twitter from crashing at the stock market. This incident makes the company lose credibility among its users, because if they cannot protect their own information, it is now much harder to believe that they have a handle on the protection of their users’ information.
Furthermore, this blow to Twitter’s credibility comes shortly after the company’s problem with cyber-bullying, that they are still trying to fully rectify.
CEO Dick Costolo, whose credibility was already hanging by a small thread because of these cyber-bullying incidents, now seems without any hope left. And is strongly advisable that Twitter acquire new management, since another immense problem that they are battling at the moment is the company’s advertisement strategy for apps.
Taking all into consideration, Twitter needs to make a change in the course of its future endeavors, if it wants to keep up with its main contender, Facebook , who is doing just fine on the stock market.
Image Source: benzinga.com
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