In an article on Bidness ETC, Martin Blanc said that Twitter Inc (NYSE:TWTR) faced a tough year 2014. The company stock remained volatile and revenue tumbled. There were management issues, outages, slippages from top management and top executive and developers left the company.
Blanc gives 5 reason as for why Twitter Inc (NYSE:TWTR) is a bad investment for people and why 2015 will be bad for the social media giant. He said that Twitter recently issued a major debt in the form of bonds, which are labelled as ‘junk’ by experts. This step will depict a bad image of the company. Twitter Inc (NYSE:TWTR) is already in crisis and issuing debt bond will hush off investors and it will be hard for the company to recover.
The second problem with Twitter Inc (NYSE:TWTR) is the Insider Selling. Top management of Twitter including CEO Dick Costolo has made massive Insider Sellings. This factor is also responsible for the all-time lows and stock plummets Twitter Inc (NYSE:TWTR) had to face in 2014. The company is also confused about its product strategy. It has no clear product strategy.
Twitter Inc (NYSE:TWTR) user base is declining. In six months, it grew only 2% whereas Instagram grew 23%. Twitter is only orienting itself as a news service. It has only 284 million users whereas its competitor Facebook is turning into a behemoth. Twitter Inc (NYSE:TWTR) is not acquiring companies, expanding its social media grip.
Blanc thinks that the deficit between revenues and operating expenses of Twitter Inc (NYSE:TWTR) is increasing. Twitter will have to drastically adapt changes otherwise experts fear that it might become an obscure platform in the coming years.
John Thaler’s JAT Capital Management owns over 7.3 million shares in Twitter Inc (NYSE:TWTR).