Twitter results disappoint Wall Street
Wall Street is very disappointed with Twitter and is talking about the outfit being sold or at very least its CEO Jack Dorsey being forced to walk the plank.
Twitter announced second quarter earnings that missed estimates and the company provided a lower than expected outlook.
Its share price fell almost 15 percent and Twitter shares are down 50 percent since Dorsey returned last summer to the helm of the social media company he co-founded.
In fact Twitter continues to show almost no growth in its user base of a little over 300 million and its advertising revenues are softer than a baby’s bottom.
The company cut its forward revenue estimate for the next quarter to $590 million- $610 million, while analysts had been expecting $681 million.
At a market cap of about $11 billon, compared with more than $40 billion at its peak, Twitter could now be a more attractive takeover target.
Verizon, which owns AOL, this week said it would buy Yahoo for $4.8 billion. Google, Disney and Apple have also been mentioned as possible acquirers of Twitter.
Twitter surged briefly earlier this month after Microsoft announced its acquisition of LinkedIn, as investors hoped for a similar deal for Twitter, but it seemed that Vole was not going to be that silly.