Wall Street places Twitter Inc on the edge of doom by cutting over half a billion from its market cap dropping the stock market value to lower than $17 in the last 24 hours. The drop in stock price followed the news that several top executives were leaving the company.
Dark hour for Twitter
Jack Dorsey, Twitter CEO, has been on the verge of turning around the company, but with what is currently going on in the company, this might prove difficult for the CEO and the Company at large.
After Dorsey confirmation of departure of top executives from the company, things haven’t been looking up as speculated; instead things are getting worse. Wall Street, to begin with, did not take the news very friendly as they have downgraded Twitter’s market value by cutting $560 million from Twitter. The slash has resulted in worried investors who have already lost patience. Most realize that if the declining trend continues, the harder it will be for Twitter to pick up; adding salt to injury Dorsey doesn’t seem to have a solution to the issue. Then adding to Twitter’s woes some analysts have been seen sending criticism to Twitter while others use the exit of officials to lower Twitter’s estimates.
As if a low stock value isn’t enough, Twitter also suffers usability issues, with its users not always clear of its benefits. In the earlier years Twitter’s growth was stable as it overwhelmingly gained followers, but lately due to lack of innovation from the site users feel ambivalent. People seem to desire a defined media, where they can use it either for social events or work.
For Twitter this isn’t so, comparing it to Instagram, with about 400 million users, the media platform is well defined, and all users use it the same way for the same purpose.Twitters 300 million users might fall out if the company doesn’t restructure and offer something to cling on.
Will restructuring solve the problem for Twitter?
Restructuring is the next step for Twitter. Top officials having left already, the remaining execs have no choice but to take up and share their roles as the CEO seeks to hire new replacements. That being said, Dorsey has hired a new CMO, Leslie Berland. Amid Twitter’s numerous problems, this is seen as a good start for resolution. Berland confirmed her new appointment to the company on her Twitter.
Coming in from American Express and taking the CMO role in Twitter, a company facing criticism and stagnation over the years, she will have to deliver much as much will be expected from her. Given her previous professional experience, Berland seems a good fit for the job.
She brings in her finance connection and marketing network which could help breathe life back to Twitter. Some of her roles will be the creation of partnerships to come up with new products and improving Twitter’s presentation to the world and its users.
Twitter’s revival will come if the company can rise to a competitive nature with its rival like Facebook. Berland is just one of the new officials expected to bring change to Twitter though Dorsey is yet to bring in more and do more. Twitter’s existence heavily depends on the top officials and what they can achieve for the firm.