Ok, that sounds like doom and gloom…but is Twitter too big to fail? Today marks six months since Twitter (NYSE: TWTR) went public. Twitter priced their IPO at $26 per share. On the first day of trading, their stock reached a high of $50.09 and ultimately closed the day at $44.90.
In addition, the lockup ends today for Twitter’s early shareholders or roughly 81% of Twitter’s stock. As such, the stock cratered almost 18% to $31.85.
At the same time, user growth and EPS are both decelerating. For the naysayer, this paints a picture of impending doom. Whether you believe that is the case or not, the question still exists.
What would happen if Twitter went away? What would happen to the users and demand? Would it shift to other Social Media sites like Google Plus or Facebook? And would it put a chilling effect on social media as a whole?
Many believe that there is value in social media. Could it be as simple as finding a balance between free and paid services? What are you thoughts?
Note: Originally published to Medium: https://medium.com/p/21aa6f8f7323
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If Twitter went away, people would find another way to express their outrage for terrible drivers, terrible tv shows, sports upsets and much more. Twitter may be losing money, but the fact is that Twitter is a powerhouse in instant communication. Whether it’s instant news like what was happening in Syria a little bit ago and currently, to Updated sports scores, to who is going to die on Game of Thrones. These things are ingrained in to our entertainment model now. We cannot watch TV or learn things like we used to. “Breaking” news isn’t as breaking as it should be. I think twitter just needs to find a different way to monetize, rather than the age old users=eyes on Ads. It’s a problem all these networks are facing. People are worth money… kind of. Twitter is the only platform that does what it does. Facebook limits your posts and your timeline, google+ well…. is google+ and when it comes to Instagram and entertainment, people just take photos of the show’s they’re watching on their TV.
Thanks for your comment. Twitter does need to do something otherwise shareholders will revolt. Once you’re a publicly traded company, the scrutiny comes to revenue…almost exclusively.