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Twitter’s share price falls to record low, breaking $17 for first time

The stock price has dropped to $15.69 after market opening on Wednesday

 

Rachael Revesz
Wednesday 20 January 2016 11:38 EST
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Twitter has dropped to a record low since it floated in 2013
Twitter has dropped to a record low since it floated in 2013 (EMMANUEL DUNAND/AFP/Getty Images)

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Social media network Twitter’s share price has slumped again following technology failures this week, leaving millions of users unable to use the website.

The share price dropped below $16 for the first time in its history on Wednesday morning after the markets opened. It has closed at $16.69 the previous day.

Twitter was plagued by a series of technical failures and outages on Tuesday in the UK and across Europe, and the resulting drop in share price was the first time in the company’s history that the stock had dipped below $17.

Twitter said on Tuesday it was aware of the outages and was working to solve the issue.

The share price drop has been steep from its IPO in November 2013 at $26 per share.

Source: Yahoo Finance
Source: Yahoo Finance (Yahoo finance)

Aaron Kessler, an analyst at Raymond James, told City A.M.: “Face­book and Instagram are getting new users. Twitter hasn’t figured it out yet.”

Facebook has seen a steep increase in value and is currently trading at around $90.

Source: Yahoo Finance
Source: Yahoo Finance (Yahoo finance)

Twitter founder Jack Dorsey, who stepped back into the CEO position last summer after Dick Costolo resigned, said he was not satisfied with growth in audience in July 2015. He said Twitter must simplify its service to deliver value to shareholders.

The technology giant is listed on both the Dow and the tech-focused Nasdaq, which are both down over 9% and 12% respectively year to date.

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