Twitter was set to announce their quarterly results on Tuesday, however a small financial start-up group, Selerity, beat them to the punch when they reported a significant loss of money. Consequently, Twitter’s stock came tumbling down a whopping 18 percent, ending the say at a little over $42 per share, shortly after Selerity reported their findings.
The famous social media giant has been steadily losing ground in the industry over recent years, reporting a $1.5 billion loss in the past five years. Twitter commented on these losses by releasing a statement that said, “Since our inception, we have incurred significant operating losses, and, as of December 31, 2014, we had an accumulated deficit of $1.57 billion. Although our revenue has grown rapidly, increasing from $28.3 million in 2010 to $1.40 billion in 2014, we expect that our revenue growth rate will slow in the future as a result of a variety of factors, including the gradual decline in the growth rate of our user base.”
This might come to as a surprise to loyal Twitter users who commonly post and tweet on a daily basis. The reasons for the huge loss the company has suffered in recent years is not fully understood by anyone except for those in charge. If the company continues to lose stock value Sergio Cortes, an entertainer, believes that Twitter will most likely become tomorrows MySpace.