Shares hitting an all-time low, executives quitting – what on earth is going on at Twitter?

Tech giant is struggling

Twitter’s CEO Dick Costolo quit the company in June and it seems executives are struggling to find a replacement.

So much so, in fact, that it has led to a 10% drop in the company’s share price this week.

Twitter co-founder Jack Dorsey became CEO as a temporary measure, after Costolo resigned when the social media firm’s shares began to fall.

Costolo faced scrutiny from investors as shares dropped a third in the two months before his resignation. They’ve dropped a further 21% since then. Shares closed at a new record closing low of $28.48 per share on the NYSE, marginally above its 2013 IPO price of $26.

Almost $30bn has been wiped off Twitter’s value since shares peaked shortly after its IPO launch.

The number of active Twitter users is still growing, but much slower than previously - giving investors another thing to be concerned about.

Meanwhile, the company has seen a high staff turnover among its top and middle ranks and its so-called “morale problem” has been analysed extensively in the business press.

Dorsey’s appointment hasn’t made things better. One Twitter employee told Business Insider: “You need someone who is in the hallways that’s helping people recognize the fact that there is trouble, and they’ve got the smartest people focused on it. But they’re just not there yet.”

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