Twitter Inc's One-Day $9.8 Billion Drop in Market Share
Twitter's shares have taken a great big 25 percent dump, which is the equivalent of losing $9.8 billion in market value, after the social media company stated that there was a "sharp slowdown in user growth."
Reuters reported this:
The stock, which debuted at $26 in November, hit a low of $50 in early trading. The shares hit a peak of $74.73 in late December asinvestors bet that the social media platform could become as ubiquitous as Facebook.
Analysts, unlike investors, were divided on the company's outlook a day after it reported fourth-quarter results.
Twitter, according to broker assessments, is either the overvalued owner of a niche product whose potential is fading or an undervalued phenomenon that is set to give Facebook a run for its money in mobile.
Could Twitter be in decline, or will it bounce back like Facebook did?