Almost one year ago, on December 26, things were all smiles for Twitter’s investors. Twitter’s stock had just closed at an all-time high of $73.31 and those who had invested in the company’s IPO 6 weeks earlier, had almost tripled their investment. Than, 2014 happened.
The year started off badly when Twitter reported disappointing user growth in its first earnings report as a public company. The company’s share price immediately dropped by 24% and continued to slide until June, when the momentum turned back in Twitter’s favor in anticipation of the FIFA World Cup, which turned out to be a huge success for Twitter.
Twitter’s stock subsequently climbed backed up before the company’s third quarter earnings report once again spurred fears about the network’s limited growth potential
. Shares began tumbling again and are now down almost 50% since January.
Adding insult to injury, Facebook, the company that Twitter can’t help being measured against, is having a pretty good year. Facebook’s mobile ad business
is flourishing and Instagram, the photo sharing network Facebook acquired for $1 billion in 2012, is not only the preferred social network among teenagers
Facebook’s shares are up almost 40% since the beginning of the year.