Twitter share price tumbles to fresh lows on stalled user growth
Twitter shares opened six per cent lower, hitting a fresh all-time low of $13.91, under the $14 mark for the first time.
It recovered some of its after hour, however. It plunged as much as 14 per cent after reporting its latest earnings on Wednesday.
The quarterly numbers revealed it lost 2m users from the third to the fourth quarter.
Revenue, however, jumped 48 per cent year-on-year to $710m indicating that it is making more money from existing users.
The newly returned chief executive Jack Dorsey outlined his plans to reinvigorate the company, laying out plans to kickstart the stalled user growth.
Read more: It's official: We've reached peak Twitter
In a note to shareholders he discussed a five-point plan, including fixing "the broken windows and confusing parts" – or, make features that make Twitter clearer to new users.
It yesterday introduced a new timeline feature that will show curated "best of" tweets rather than in chronological order.
Twitter will also concentrate on its video streaming startup Periscope.
The plans failed to impress investors however. One analyst believes Twitter has reached its peak. Writing for City PM Louis Basenese of Wall Street Daily said
"Clearly, none of it’s working. Nor will any of his [Dorsey's] future “bold” ideas. Why? Because Twitter’s nothing more than a niche product, which I’ve been arguing for a long time. While management succeeded in convincing investors otherwise for years, that’s no longer possible. The numbers speak for themselves."