Twiiter reportedly will cut up to 300 jobs just days before the company’s third quarter earnings reports. The disappointing news will add additional pressure to the Twitter board. There are a bevy of reasons why Twitter isn’t performing which includes large declining popularity, slumping active memberships, increased competition, losing key talent and failed takeover acquisitions.
Following recent weeks, there has been many alleged bids from buyers wanting to purchase the Twitter brand. Interests varied from Walt Disney, Google (NASDAQ:GOOGL), Verizon and even Microsoft (NASDAQ:MSFT) were in the mix. As speculations continued but there were still no official bids on the table and interests evaporated one after the other into thin air.
There has been many reports written on who would be the most perfect suitor for Twitter, and I thought Disney would be a great fit. Given Disney expansive portfolio, they are still missing a media outlet to broadcast their brand across a larger audience. As Disney dropped out, so did shares on Twitter, it is now trading around $18 per share. One of the biggest problems facing Twitter is the stagnated user growth it’s facing and reduced revenue growth.
Twitter has reported a terrible earnings reports back in April ’16, so how low will Twitter shares go?