Twitter is struggling and the final nail in its coffin could be announced on Thursday as Twitter makes public its Q3 financial results and the whole tech world is interested to see how far gone Twitter really is.
In recent weeks Twitter has failed to attract buyers most likely owing to it’s continued poor financial form and failure to retain existing and attract new users over the last couple of years. Without fail, Twitter has proven to be a cultural success and a business failure which is sometimes the case when you fail to develop a sensible business model that both you and your users can enjoy.
The announcement on Thursday is already showing signs of a doomsday for Twitter employees as multiple news agencies have reported a likely 8% staff reduction (which translates to hundreds of workers) by the end of this week. Some analysts have attributed the job losses to twitter’s failure to retain top talent as most are offered stock options as payment but who wants to be paid in a plummeting stock?
Now it makes a bit more sense why Twitter’s potential buyers have all but distanced themselves from any acquisition rumours. Most likely any interested buyer either didn’t want to be associated with a company that was about to release dismal financial results (in fear their own stock would be affected) or want to wait it out and use the poor financial results as leverage to negotiate for a cheaper price. Twitter has been holding out for $18 billion, a figure many in the tech world have said to be ridiculous and overvalued.
In either situation, Twitter finds itself between a rock and a hard place. Since Twitter is a Public company it cannot withhold its financial results. One way or another the information will get out and could have a huge impact on its already struggling share price.
Twitter already made the big decision to announce its financial results before schedule, it was meant to announce them after the market closed but has decided to announce them before the market opens.
Of interest is that Amazon and Alphabet (Google) will also announce their results on the same day, in what used to be competitive and aggressive show of intent by Twitter could be them hiding behind all the media hype of the “big boys” results.