Twitter is probably one of the biggest and the most popular social networks in the market, given the fact that everyone has a Twitter account – starting from your neighbor and your favorite retailer, to President Trump, world leaders, pop stars and even Pope Francis.
Statistics showed that up to 92% of the world’s leaders use Twitter as one of the tools for addressing the public, in addition to having Trump showcasing the power of this social network more than a single time by affecting stock prices and dictating new trends with a single tweet.
Although Twitter represents a widely popular social media platform, investing in Twitter stocks (TWTR) might not be the most perfect investment case scenario, especially with the most recent announcement that the co-founder of Twitter, Evan Williams, is leaving the board after 12 years.
Twitter Announces the Rise of Operational Costs – TWTR Falls Short of Expectations
The co-founder of Twitter, Evan Williams, announced leaving Twitter board after 12 years working on one of the biggest social networks in the market, presently holding the position as the CEO of Medium platform.
As Williams is departing in the course of the next few days, Twitter stocks have taken a downturn already at the beginning of February, experiencing downward trends even before the beginning of 2019.
The shares are said to have dropped back at the beginning of the month due to the disappointing revenue report, as Twitter failed to meet investors’ expectations.
According to many analysts, Twitter might be looking at continued cycles of negative trends and price drops in the upcoming period, while the company also announced that the operational costs are to be increased.
While the operational costs are set to rise by 20% during the course of the current year 2019, the last quarter revenue increased by 24%, bringing the company 909 million through video advertising.
Analysts are not particularly positive about the future performance of TWTR, predicting that the first quarter revenue for 2019 will reach a value between 715 million dollars and 775 million, which is less than previously expected.