Twitter’s turmoil on Wall Street continues. The stock price hit a new low at $17.15 per share, down more than 4 percent, in Tuesday afternoon trading.
The unwelcome record comes on the heels of a global service outage for the microblogging site early Tuesday. It was the third outage within five days, which jeopardizes not only ad revenue but also user satisfaction at a time when the company is struggling to expand its ranks of active members.
Twitter Inc.'s (NYSE:TWTR) stock price has been crashing as of late. In August, the price fell below $26, the level at which it opened on the stock market back in November 2013. The price surged 73 percent on its first day, but of late Twitter has not been faring so well with investors.
Indeed, some market watchers have been urging stockholders to sell their Twitter shares. Charles Sizemore, principal of Sizemore Capital Management, listed Twitter among 10 stocks that investors should sell “before things get really ugly,” in a blog post last week.
“It's below its IPO price, and virtually everyone who has bought the stock since the IPO has lost money,” wrote Matthew Tuttle, CEO of Tuttle Tactical Management, in an email. “The company has many structural problems and must do something significant to encourage investors to buy the stock.”
Recent earning reports have disappointed Wall Street. The third-quarter report in October, in which Twitter actually beat expectations, nevertheless sent the stock plummeting by 13 percent. One contributing factor was a lack of significant user growth.
“It wasn’t a good moment,” Tom Taulli, an analyst for InvestorPlace.com, told International Business Times at the time.
Analysts are putting some faith in Twitter’s new product Moments, formerly referred to as Project Lightning. Twitter co-founder and product visionary Jack Dorsey formally returned to the company as CEO back in October. But investors are still waiting to see if he can engineer a turnaround.
Recent endeavors also have yet to inspire enthusiasm for the company’s well-being. Dorsey and Chief Operating Officer Adam Bain took meetings with marketers earlier this month at the Consumer Electronics Show, but not everyone was impressed by the product roadmap sketched out.