Reuters

(Reuters)

Twitter Tumbles To Record Low

By Social Media FOXBusiness

Twitter (TWTR) shares tumbled 5.8% Thursday and closed at $26, a record low for the social media company. It’s also the same level that it priced its November 2013 IPO.

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Today, that IPO fanfare is long gone with the stock down from a record high of $73 in December 2013. Twitter continues to have a difficult run as a public company, falling short of Wall Street expectations on user growth in the most recent quarter.

Complicating lackluster growth, the company is without a permanent CEO, following Dick Costolo’s departure from the role in June. Since then, co-founder and former CEO Jack Dorsey has taken the helm, while remaining CEO of Square, which has filed for an IPO.

A rumored takeover target, the lower the price drops, the more affordable it becomes for companies like Facebook (FB) and Microsoft (MSFT). The company currently has a market cap of $18.56 billion.

While many investors are skeptical of Twitter’s perceived lack of direction, some remain optimistic that the company will grow under the right leadership.

“It’s a challenge being a tech company in this market right now, but when evaluating Twitter, we see it as among a small group of companies positioned to capitalize on the shift to mobile given its optimization for native ad formats,” said James Cakmak, analyst at Monness Crespi and Hardt.  

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Adding further pressure to Twitter shares on Thursday, the S & P 500 and the Dow Jones Industrial Average, both turned negative for the year while the Nasdaq Composite remains 3% higher.