Twitter shares dropped 20% since market close on Wednesday and have continued to plateau.
Unlike other recent business turbulence, the drop’s cause is no mystery. Twitter failed to meet their earnings forecast due to advertiser dissatisfaction. But why do the losses of Soho billionaires’ matter to us?
Put simply, advertisers will force Twitter to futher commercialise. We will most likely see an increase in data mining, targeted adverts and a major increase in the volume of adverts appearing on our timelines in general. This is the necessary action for Twitter to take to end advertisers’ halt on their Twitter spend levels. Advertisers commented in Fortune that, “we’re not seeing YoY (year on year) growth” and “poor performance in 3Q(third-quarter)”.
Unless three wise men come baring gifts of investment, major advertising changes to the platform is likely Twitter’s only solution to resolve earnings in Q4.
Twitter stock is currently down -8.08 on the London Stock Exchange and Bloomberg reports that Twitter Analysts do not foresee a quick rebound.
Words: Monica Young
Photo: Sara Kurfeß