Top Reasons Why Twitter Posts Slumps on Monday

October 11
6:00 AM 2016

Twitter is starting its week on a bad mood this Monday.

Twitter stock which closes to $19.85 on Friday has already fallen to $17.28 in premarket trading. With that, the company has a market value of $12.23 billion, compared with almost $53 billion at its peak in December of 2013.

Twitter is struggling with stagnant user growth and continuing losses, had told potential acquirers it wanted any deliberation on a sale to conclude by the time it reported third quarter results on October 27. Inc., Alphabet Inc. Google and Walt Disney Co., which had worked with the banks on a potential acquisition is unlikely to proceed.

Report had said that Google will not make its bid even Apple and Walt Disney will not make its bid either leaving is the only remaining buyer but however has not yet given any confirmation.

Over the year, the company had struggled to generate its revenue despite of the average of 313 active users a moth. Twitter said that they will remain independent if there are no pending bids anymore.

Twitter had already planned to have a board meeting with outside advisers on Friday to discuss a sale but cancelled, citing one familiar with the matter. CEO Mark Benioff had publicly expressed his interest in Twitter, but stopped short of saying the company would make a bid.

Twitter has also looses some of its users. Its analyst says that the slump is due to competitions.

In an age of interaction, the simplest path to advantage is higher quality interaction. Abuse isn't a nuisance that's peripheral to "real" strategic issues. It is the central strategic issue. Offering low-quality interactions in an omni-connected world is just like selling defective products, the interaction age equivalent of faulty auto parts in the industrial age, or false advertising in the branding age.

If we're going to fix Twitter, or anything else, we must put people's well being before our own institutional performance - because the former drives the latter. Here's the rule that we must remember: High quality interactions expand human potential. Low quality interactions reduce, diminish, and shrink it. Thus, learning to produce high versus settling for low quality interactions is one of the great challenges of competence for institutions today. They've never really had to do it before - but if they don't do it now, most of them are probably going to end up like Twitter: not just devalued by the stock market ... but dwindling slowly into social, economic, and cultural insignificance ... without a clue as to why.

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