Twitter Stock Value Down 25 Percent This Week As Long-Term Revenue Questions Persist
SAN FRANCISCO (CBS SF) - Twitter shares sunk again Thursday after a mild comeback. A quarter of the company's value has evaporated over two days, pushing the valuation down to $25-billion after its disappointing earnings report.
Analysts are chiming in with what's wrong in their eyes, with a Barclay's research note pointing out that while Twitter doesn't have a supply problem, it has a demand problem, in that advertisers aren't receiving as many clicks from users as needed to prompt them to spend more on the site.
A Wells Fargo client note says despite Twitter making efforts to improve the experience, the core product remains too challenging for casual users, and they eventually leave.
