PFM Trading: Micro-blogging network, Twitter, reaches double-digit age but relationship with Wall Street rocky.
PFM Trading reports Twitter, the micro-blogging service, celebrates its 10th anniversary since the sending of the very first tweet by one of its co-founders, Jack Dorsey. Since then, Twitter has gone on to achieve enormous popularity but its relationship with Wall Street since it went public in November 2011, has been less than amicable.
Its shares debuted at $26 and quickly charged up to an all-time high of $73 before problems appeared in the rate at which new users joined its network. Investors in tech and social media stocks generally give companies wide latitude on traditional measures of value such as earnings, revenues and profits. Twitter and other social media companies were, instead, valued on their potential to keep growing the numbers of monthly active users.
Twitter has been unable to consistently grow MAUs and consequently, its stock has been punished. It is now trading in the $16 – $17 range, significantly below its IPO price.
PFM Trading has been critical of the service’s appeal to new signees beyond its 300 million or so hardcore users. “A lot of people have considerable difficulty understanding what Twitter is supposed to do,” said PFM Trading’s Vice-President, Edward Gold.
“Many users sign up but quickly lose interest in it because they can’t figure out its usefulness, especially when there are so many apps and internet messaging services that allow you to broadcast your thoughts and share media and news to followers.”
The firm does concede, however, that the return of Jack Dorsey as the company’s CEO augurs well for Twitter. “Dorsey is a very clever and innovative leader and, with him at the helm, Twitter stands a chance of redefining its role within social media,” concluded Gold.
About PFM Trading, Inc.:
PFM Trading, Inc. is an independent investment and wealth management practice based in China, and staffed by consummate professionals with a verifiable track record of success in the global financial markets. As at 1 January 2013, PFM Trading managed over $3.5 billion of assets on behalf of esteemed clients around the world.
Here at PFM Trading, we enjoy an enviable reputation within the wealth management community. To others, the phrases “unique approach” and “due diligence” represent no more than marketing-speak but to us, they are a code: a code that is indelibly inscribed upon every part of our organization.
PFM Trading, Inc.
New World Centre,
No. 6009 Yitian Road,
Futian District, 22rd Floor,
Shenzhen, Guangdong, China, 518035
Phone: +852 5808 4324