Skip to main content

Twitter stock closes at IPO price after two years

Twitter ended Thursday with a stock price of $26 (£16.60), the same price it started at when the microblogging service launched onto the public stock market in 2013.

On Tuesday, it lost another five per cent of its share value, hitting a new all time low.

For buyers of Twitter stock that started at the IPO, that means no gains after two years. Compare that to Facebook, which started at $38 (£24.20) in 2012 and in two years reached $60 (£36.30), it is worry for the shareholders that put faith in the management of Twitter.

Originally, Twitter set the stock price of $26 but it surged over 70 per cent in a day. Over the next two years, the stock would continue to have its ups and downs. The loss of Dick Costolo as CEO has really hurt the stock, with reports of internal disputes.

Some shareholders have suggested Google or Facebook acquire Twitter, others are looking for a more product centric company. The real issue right now is the interim CEO Jack Dorsey, and the lack of a full-time CEO to change the company’s fortunes.

Dorsey may end up becoming the full-time CEO, dropping his position at Square to work on Twitter. It would be a return to 2008, when Dorsey controlled the company.

That said, the board are still looking for other suitable candidates who may be able to turn the company around. Product, business and technology leaders from companies in Silicon Valley are being prodded for interviews, but a few might decline a proposal from Twitter in light of the situation surrounding the company.