Twitter Shares Slip By 12% To Hit New Low

Twitter (Xetra: A1W6XZ - news) 's shares have lost over 12% of their value this week as efforts to replace its old boss, Dick Costolo, continues.

Mr Costolo's resignation announcement in early June came alongside a statement saying that Twitter's co-founder, Jack Dorsey, would replace him but that such a move would only be "temporary".

In the months preceding his departure, Mr Costolo had come under increasing investor scrutiny, with shares in the company falling by almost a third in the two months before he resigned.

Since then, the shares have fallen a further 31% as investors fret over the speed and quality of Mr Costolo's replacement.

In addition recent financial results have disappointed with growth rates in monthly active users slowing in the second quarter.

Twitter's inferiority to Facebook (NasdaqGS: FB - news) from a revenue generating perspective is a concern, with Facebook generating 71% more revenue per active user than Twitter in the three months to 30 June.

Twitter shares closed down 7% at $25.67 in New York after taking into account after hours trading - an all-time low and below its 2013 initial public offering price of $26.

Since its shares peaked in December 2013 nearly $30bn has been wiped off the value of the company.

Twitter’s interim-CEO and co-founder Jack Dorsey briefly stemmed the share prices decline as it was announced to the market that he had bought $875,000 worth of Twitter shares on 7 August.

Since then that investment has already lost $61,000 in value, but this is unlikely to trouble the tech star who is worth an estimated $2.4bn.

To add to Twitter’s woes it was reported earlier this week that several top Ivy League universities have been offloading their Twitter holdings.

Speculation over the identity of - or even potential candidates for - its new boss has been varied, with even the rapper Snoop Dogg throwing his hat in the ring.

More recently it has been rumoured that Adam Bain, Head (Other OTC: HEDYY - news) of Revenue and Partnerships at Twitter, is an internal candidate for the position.