Twitter Inc has announced a slew of new features in recent weeks and shareholders are stumped by the lack of movement in the firm’s stock. There’s been up and downs both, but the firm’s shares have stayed stoically below $30 since the end of July. New products, particularly of the half-baked style we’ve seen in recent days, can’t save the firm.
Twitter doesn’t have a leader. Until it reveals one Wall Street appears prepared to simply sit on its hands with regard to the company. Twitter shares sold for just over $27 when the market closed on Tuesday. That came after two key products were added to the platform. One will allow Twitter users to buy stuff over the site, another will allow them to donate to Donald Trump.
Twitter celebrates money-making future
The two new features are tiny and they’re not likely to bring much of a change to the social network by themselves. They show, however, that Twitter might have what it takes to make money with its platform, and that should rouse some excitement in those holding shares in the firm.
On Monday Twitter revealed a feature it built with Stripe that will allow people to buy products by sending a Tweet. On Tuesday the firm said that donations to politicians would now be possible over Twitter. Those donations will function over Square, a payment processor run by Twitter founder Jack Dorsey.
It hasn’t. Twitter shares are trading just $1 above its price on IPO days and far below where it traded early on this year. The firm’s future is in doubt as each new challenge appears to bring an ineffectual response from those in charge at the firm.
Looking for a solution at Twitter
A plethora of small features isn’t going to change Twitter . If anything that might make the platform appeal year to users. Twitter shareholder Chris Sacca reckons that Twitter is having trouble explaining itself to the people that use its service.
Adding a bunch of new features that are hard to find and weird to use simply won’t help the firm simplify its offering to those thinking about leaving. Mr. Sacca, in a frustrated massage on September 11 said, “Enough is enough. The board needs to @act. They are running a “process” yet there is only one person fit to run this company: @jack.”
What Twitter needs is a holistic change in the way it offers it service and the way it sells itself to both advertisers and users. That’s going to take a huge amount of effort, and the groundwork may already be there from the firm’s coming Project Lightning platform.
It’s clear, however, that Wall Street just isn’t going to trust Twitter to do anything right until the firm shows it’s able to pick a CEO for itself. It’s been more than ten weeks since Dick Costolo left the firm, and we’ve heard nothing about progress toward its CEO goal.
That’s what’s holding Twitter back. As long as the chair at the head of the firm’s C-suite is left vacant, Wall Street isn’t going to care about tiny product reveals. All that matters is Mr. Dorsey’s replacement.