Twitter (TWTR) Stock: Will New Board Members Save This Company?

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Twitter Inc (NYSE: TWTR)

Twitter has found a way to appease investors once again… at least for the short run. The company has added Hugh Johnston and Martha Lane Fox to its Board of Directors. However, it seems like the company was looking to move a bit higher up the ladder with new members of the board. Nonetheless, the company is struggling in a big way. So the big question here is simple. Will new Board members save TWTR? Today, we’ll talk about the primary issue the company has faced, whether or not new board members are likely to make a difference, and what we can expect to see from TWTR moving forward. So, let’s get right to it…

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Twitter Has Been Struggling For A Very Good Reason

TWTR has been on the ropes for quite some time now, and the reason for the struggle is simple. Twitter is a company that simply can’t seem to drive in new users and maintain them as regular users on the network. As a result, Dick Costolo resigned as CEO of the company early last year, leaving Jack Dorsey in his place as interim CEO – which turned into a long-term CEO position as it was announced later on.

However, Dorsey hasn’t been able to solve the problems TWTR has been facing either. In fact, the problem has gotten worse. Instead of seeing declining user growth on the social network, we’re starting to see users leaving the social network. A couple of months ago, it was announced that Twitter’s daily active users weren’t growing at all; instead, they were going backwards. This is an issue that needs to be solve immediately, but the big question is…

Will New Board Members Really Solve The Problem?

As mentioned above, TWTR has added new members to its board. According to recent reports, the company has appointed Hugh Johnston and Martha Lane Fox to its board of directors. On top of that, according to the NY Post, TWTR has been in talks with Peter Guber as well as Shonda Rhimes about possible seats on the company’s board of directors. However, can new directors save Twitter?

To be honest with you, Twitter has thrown out solution after solution to try and fix their user growth problem. Of course, nothing has worked. Then again, I haven’t been too excited about anything the company has announced to date. However, I do have to say that I am a bit excited about the new board members. The reality is that it’s clear that the old members of the board, as well as the rest of management, aren’t doing what they need to do in order to cause growth in the company. In all reality, the work wouldn’t be hard. The company would simply need to put advertisers on the back burner and focus on users. It’s my hope that the new board members will push this opportunity for growth instead of simply hopping on the band wagon and following the train down into the dirt.

What We Can Expect To See From TWTR Moving Forward

Moving forward, I have a relatively bearish opinion of what we can expect to see from TWTR. As mentioned above, I do believe that there is a possibility that the new board members will help pick things up on the user growth side of the coin. However, I’m not confident that this will actually happen. The reality is that until we see big changes leading to strong user growth at TWTR, chances are that the stock is going to continue falling, and in a big way!

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What Do You Think?

Where do you think TWTR is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Pixabay]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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