Twitter (TWTR) Short Interest Reaches A 52 Week High

Twitter Inc (NYSE: TWTR)

Twitter has been having a rough time as of late, and for a very good reason. Unfortunately, the company hasn’t been able to pick up user data leading to the resignation of Dick Costolo several months ago. Now, the TWTR is running into a new problem, they can’t seem to get a new CEO involved in the company and it’s killing investor sentiment surrounding the stock. As a result of the struggles TWTR has faced, short interest has climbed to a 52 week high. Today, we’ll talk about where short interest is on the stock, the problems TWTR is continuing to struggle with, and what we can expect to see moving forward.

TWTR Short Interest Climbs To A 52 Week High

Short interest data as of September 15th recently became available. At that point, the figure on TWTR had risen to a 52 week high. On August 31st, the number of Twitter shares that were being sold short came in at 38.6 million. However, as of September 15th, that number had risen to 40.4 million shares. Unfortunately, this trend seems to be one that’s only going to get worse.

Problems Twitter Still Struggles With Today

Unfortunately, Twitter isn’t out of the water just yet. In fact, they are nowhere near out of the water. The company is currently struggling with the same issues that led to the declines in the first place…

  • User Growth – First and foremost, user growth is a major concern for investors, and that problem doesn’t seem to be going away. In fact, TWTR CFO, Anthony Noto, recently had cautious statements to provide with regard to user growth. At the same time, he compared Twitter’s audience to that of Facebook; a move that I believe to be the worst he could make. Nonetheless, it doesn’t seem as though Twitter’s user data is going to improve anytime soon, and that’s striking fear in the hearts of TWTR investors.
  • CEO Issues – It has been more than 100 days since Dick Costolo’s resignation. In the mean time, Jack Dorsey has been acting as interim CEO. However, as the CEO of Square, a company that will be going public relatively soon, he’s already got his hands full. Ultimately, Twitter needs to find someone else to fill those shoes. Unfortunately, it doesn’t seem as though this is going to happen anytime soon either. The reality is that the new CEO of TWTR needs to be a very high level person, one with a strong reputation. However, I don’t know of anyone that would match that description and be willing to hop on a sinking boat that could forever stain their reputation. So, on the CEO front, TWTR is stuck between a rock and a hard place, just trying to figure out how to break through one side or another!

What We Can Expect To See Moving Forward

A year ago, I loved Twitter’s stock. However, what I’ve seen throughout 2015 has changed my views quite a bit. The reality is that I would like to tell you that TWTR is likely to see massive gains, but that wouldn’t be the truth. With the cautious statements made by Noto, one would only imagine that Twitter’s user issue is still a big one, and there hasn’t been a solution to it yet. Also, considering the rough time they’re having to find a CEO, investors have no choice but to be at least somewhat concerned. All in all, TWTR is sinking. I couldn’t tell you how low they will go, but I can tell you that I’m not expecting to see any massive positive movements any time soon.

What Do You Think?

Where do you think TWTR is headed and why? Let us know in the comments below!

[Image Courtesy of Flickr]

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