I think Jack hit the nail on the head today when he said: “The whole world is watching Twitter. While we may not be currently meeting everyone’s growth expectations, there is one thing that continues to grow and outpace our peers: Twitter’s influence and impact.” There’s no denying the importance of the platform. But they are obviously not meeting certain sets of expectations. Somewhere they need to figure out how to close that gap if that's even possible at this point.
I think the market has more or less told us at this point that this is what it thinks Twitter is worth in the face of continued lackluster results. For investors it’s basically a coin flip, but I’d say that coin flip offers more upside than downside assuming that management continues to work on the initiatives they’ve laid out for us in things like engagement, safety, speeding up the pace of innovation and development, bring stock-based compensation in line with peers and hitting GAAP profitability in 2017. They seem to have sensible goals that could ultimately help the cause so I imagine as long as they feel they are on that path Twitter will remain independent. But this is looking more and more like a “important product, bad investment” kind of situation.
For shareholders today? I don't see any harm in hanging onto your shares; I'll hang onto mine. It's a pretty easy ticket to the potential that this thing may still have and it's probably best if you just tuck 'em away and check back in a year. Again, it's an important network and it's not something that can just disappear with no consequence. By the same token I totally get it if you've just had enough and can't deal with even seeing the ticker in your portfolio anymore. It's been a dud of an investment to say the least. But that's why we preach patience and diversity; we just ain't gonna get 'em all right. Don't own shares but are thinking about buying? I guess I could think of worse things to do, but I can also think of way better ideas out there for your money today. Like I said, this one's pretty much a coin flip now. As long as you're diversified and can sleep at night, it's all good either way.
Keep calm and Hit 'Em With the Hein