Twitter just can't get it together. Their corporate vision is blurred, executives are fleeing, and when the company spent an entire day trying to impress Wall Street investors, they botched it by opening a garbage bag of a "strategy statement." Now concerns over the company's future has led Standard and Poor's to rate Twitter's debt as "junk."
The credit ratings agency gave Twitter a BB- rating, three notches below investment grade, and said the Californian company had a "fair" risk profile.
S&P said Twitter needs to boost revenues in overseas markets before the agency would consider raising the rating.
Twitter's stock shot up earlier, after Wednesday's "analyst day," since money-minded Wall Street was more impressed with the new product features unveiled than they were concerned over a mealy-mouthed strategy statement. But the financial rebound didn't last long: after S&P junked Twitter's debt, the company's share priced plummeted.
Correction: an earlier version of the post labeled Twitter's stock as "junk." S&P rated their debt as "junk."
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