It’s been an up-and-down week for Twitter. On Wednesday, during its presentation to investors, the microblogging service was teased heavily after a slide showing a convoluted “strategy statement” made the rounds (on Twitter, of course). However, the market didn’t seem to mind as the company’s stock price closed Wednesday up 7%.
The company was hit again on Thursday when Standard & Poor’s labeled the tech firm’s bonds with the dreaded junk status. Three below investment grade, the junk rating is the result of S&P feeling that Twitter is facing “major ongoing uncertainties or exposure to adverse business, financial, or economic conditions,” likely due to a multitude of factors, including the platform’s slower-than-expected growth. S&P’s Andy Liu says that the company will need to do more than it’s doing now to remain relevant to its users.
CEO Dick Costolo had already been working on some new products for the company that would encourage more of the over 500 million people who visit Twitter without an account each month to sign up as well as well as tools to make it easier for new users to get the hang of the service like a pre-populated timeline of curated, popular accounts.