Why Twitter stock has been falling since 2014


    Why Twitter stock has been falling since 2014

  • 1 Twitter is losing users

    According to a report released by Twitter, the company has lost 2 million users in the last 3 months of 2015. The fact that the company is losing users scared some investors. While the drop is just 1%, it was still considered a negative sign.

  • 2 Growth stalled

    Twitter is having a hard time growing. The site's growth almost halted and even some users started moving away from it. See how did Twitter start.

  • 3 Frequent management changes

    The frequent change of leadership in the company has pushed away many investors who are looking for a more stable leadership for the company. See Why do stock prices fall.

  • 4 Doubts about future growth

    Many investors started having doubts about the possibility of Twitter growing more or even maintaining the rate of growth it achieved in the past.

  • 5 Monthly active users going down

    According to the report of the third quarter, the monthly active users of Twitter decelerated by 11%.

  • 6 Deteriorating engagement

    The measurement firm, ComScore, pointed out that engagement on Twitter is deteriorating.

  • 7 The company's job cuts

    In October 2015, Twitter announced laying off 8% of its staff to make the company more efficient. Some people might have seen this as a warning sign. See also why is Twitter popular.

  • 8 No GAAP profit

    While Twitter reports making profits, still when the generally accepted accounting practices (GAAP) are applied it would turn out that the company is losing money since its inception.

  • 9 A product problem

    Many see Twitter's problem as a product problem. The uncertainty associated with the possibility of making changes to the core product has scared away many investors. See why people hate uncertainty.