Twitter Inc (NYSE:TWTR), despite its high valuation is a mismanagement company, according to Paypal’s co-founder and author of the book “Zero to One”, Peter Thiel. Thiel, who was also a financial backer in Facebook, gave his opinion about Twitter Inc (NYSE:TWTR) to Andrew Ross Sorkin on CNBC.
“[…] They [Twitter Inc (NYSE:TWTR)] have a lot of potential. It’s a horribly mismanaged company. The people, you know, probably a lot of pot smoking going on there, but it’s such a solid franchise that it even works with all that […],” said Thiel.
Thiel, who has a bullish outlook on Facebook Inc (NASDAQ:FB), said that although he likes the social media platform that Twitter Inc (NYSE:TWTR) owns but it’s hard to evaluate the company given the inefficient management that is controlling it.
The social media company has been said to be suffering from inactive users. The management in this case has one simple task, that is to increase the user base. According to Thiel, they do not seem to be up for the job.
While the social media platform is immensely popular among professionals who work with communication, it has failed to gain the favour of other every day users who seem to be more inclined towards Facebook Inc (NASDAQ:FB) as it meets their requirements for virtual relationships in a better way.
Twitter Inc (NYSE:TWTR) which was trading in the $60-$70 range at the beginning of this year is currently trading at $50.71. In fact the stock price even saw a low of around $30 in May this year. Also, Twitter Inc (NYSE:TWTR) has recently announced its intention to add a pay button on its interface in order to diversify its revenues. We will have to wait to see if this was also a decision that the management made in one of their smoking sessions or if it was a well thought out strategy.
Video Embed Size: 530 X 298 640 X 360
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.