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Twitter Inc (TWTR) Is a Social Network That Can’t Talk

jack dorsey twitter inc TWTR

Twitter Inc can’t get through to its users, and those with shares in the firm are suffering as a result. In recent weeks shares have been crushed and those leading the firm have gotten quieter and quieter. Bob Peck of SunTrust Robinson may think that the firm’s CEO reveal is coming this week, but even that won’t mark the end of the firm’s troubles.

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MKM Partners analyst Rob Sanderson reckons that Twitter’s inability to tell users why it should be a part of their lives is getting in the way of any money making possibility. “The mass market does not know why it needs Twitter and those that try, often find a cumbersome experience and leave,” he said.

Twitter does the work, but leaves rewards behind

Those that leave Twitter  aren’t the special case, at this point they’re likely the majority. There are more than 1B abandoned accounts on the platform. Just 300M users are active on Twitter on a monthly basis. That’s a lot of dead wood, but Jack Dorsey, following a path set by Dick Costolo is working on fixing it.

When Chris Sacca wrote his piece on the problems at Twitter, he said that the firm’s lack of ability to communicate with users has become a problem. If those on Wall Street were asked what their biggest problem with Twitter is, they might repeat that issue though it’s shareholders that Twitter simply won’t speak to.

The firm is still looking for a CEO, and Wall Street hates waiting. There have been lots of rumors about who the next head of the firm might be, but no news from inside the company. Twitter is doing nothing else that traders seem to find interesting, and it simply won’t tell them its plans for the future until a new CEO takes the reins full time.

Bob Peck reckons that the new CEO, will be the old CEO. Jack Dorsey, who is the interim CEO right now, will take the job full time in Peck’s view. It’s clear that Mr. Dorsey knows Twitter inside and out. It’s also clear that he lost the job once before, for some of the same reasons that Dick Costolo was pushed out.

Learning to talk at Twitter

Twitter  isn’t able to express itself to those that use the platform, and with no team in charge it’s not able to express itself to those holding shares either.

That’s sending shares close to all time lows on Wednesday morning. At time of writing shares were selling for 27.60, down 2.47 percent for the day so far. The firm’s all time low, which was set on August 7, sits at $26.87.

Mr. Sanderson of MKM warned that though Project Lightning and other moves at the firm appeared to be heading in the right direction, they have yet to be seen and competition was building from the likes of SnapChat and Facebook.

Twitter needs to learn to talk, and removing the 140 character limit on direct messages is a start. As the all time low gets lower and lower, we’ll see if the firm manages to improve in any other area. An update on the CEO search would be nice to start.

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