Twitter is circling the drain right now, with Global Equities Research's Managing Director Trip Chowdhry saying that Twitter is "toast" and "not even a $10 stock". Harsh words, but with the departure of another top level executive this week, he could be right.
Josh McFarland, VP of Product at Twitter said he was leaving the company on the same day that Twitter's Chief Technology Officer Adam Messinger tweeting that he is leaving the social networking company to "take some time off". They added onto the pile with Adam Bain, Chief Operating Officer of Twitter, who was replaced by Chief Financial Officer Anthony Noto, for now.
Chowdhry continued: "Many investors were foolishly building (an) investment thesis based on complete stupidity". Twitter shares closed at $17.92 on Tuesday, so if Chowdhry is right and Twitter stock drops to $10, it would be a 44% drop from where it sits today. Chowdhry added that Twitter data quality is "horrible", and that many pollsters used Twitter data to predict Hillary Clinton's win - but with Donald Trump winning, it shows that Twitter's data isn't very valuable at all.
"If data quality is bad, ad targeting is bad, and if ad targeting is bad, advertisers are not happy, and hence monetization will remain challenging for Twitter", added Chowdhry.
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