Technology stocks collectively lost billions of dollars in value on Friday following one of the darkest days on Wall Street so far in 2016.
The stock market was down across the board on Friday, but stock that usually remain unaffected, such as Facebook and Apple, did not come out unscathed this time. Even Alphabet, Google’s parent company, took a hit.
Twitter’s CEO Jack Dorsey is likely none too pleased with Friday’s numbers. Not only did Twitter drop significantly — Square, a company which he cofounded, dropped in value as well.
Here’s a overview of some of the most notable decreases:
- Twitter: –5.58%
- Square: Down –5.08%
- Facebook: –3.44%
- Alphabet: –2.84%
- Apple: –2.48%
What is truly unfortunate for Twitter is that its value has dropped to new record lows in almost every day of trading so far this year. Twitter ended 2015 at a value of $23.17 per share, and now sits at a value of $17.94 per share.
Investor confidence in Twitter has been low for some time after failing to meet expectations in terms of user growth. It doesn’t that the company’s biggest announcement so far this year, removal of the 140 character limit, was met with almost universal disdain.
TechCrunch speculates this makes Twitter an attractive target for acquisition by a larger company. Looking past the negativity, Twitter does have a relatively successful advertising business with a reach that extends beyond just its monthly active users.
That’s a good thing for Twitter, and Facebook as well, because for the first time ever its estimated marketers will spend more on display ads than any other form of online advertising. This includes Facebook News Feed ads and Twitter’s promoted tweets.
Featured Image Credit: dibrova / Shutterstock.com
