Twitter stocks reportedly dropped below its initial public offering (IPO) price, Thursday. The stocks fell to $25.98, which was nearly 6 percent but recovered at the end of the trading hours to $26, USA Today reported.
Still, that's a drop of 5.83 percent not to mention that $26 was the Twitter's IPO in November 2013, when it went public. During the time, the company closed its first day at a price of $44.90, and a month later, it soared high to $73.71.
The company's stock price began to slump after the release of their Q2 earnings.
For one, Twitter executives reportedly recognized the difficulties attracting new users because the social networking site is still a bit complicated to use. The company reported 304 million users by the second quarter.
It rose by 2 million compared to the first quarter's report of 302 million. Nonetheless, analysts said that the growth was sluggish set against Facebook's 1.5 billion users.
Although, Facebook isn't just Twitter's sole competitor. It still has Instagram and Pinterest, which continues to increase their number of users, according to PC World.
The recent study conducted by Pew Research Center showed that 85 percent of the surveyed adults who use the Internet and 67 percent who use their smartphones were logged in to Instagram and Pinterest. The report additionally stated that the increase in the number of users doubled in just three years.
Pinterest users went up to 31 percent, from 15 percent in 2012, while Instagram was up at 28 percent, from 2012's 13 percent.
Another challenge the company is facing is their search for the new chief executive officer. Wired learned that Jack Dorsey, co-founder of Twitter, has taken the helm for the moment, and it's not yet clear if he's going to be the permanent CEO.
Twitter's former CEO Dick Costolo reportedly bowed out on July 1 due to increasing pressure from Wall Street.
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