The answer is a resounding yes from Standard & Poor, the credit rating agency who gave Twitter a junk bond rating last week.  Unsurprisingly Twitter’s share price took a battering and fell by nearly 6% as a result. What’s more this came just one day after Twitter’s management tried to win over investors with their long term vision for the company. Ouch.

So what does this mean for the future of Twitter?

Although certainly not a death sentence, a junk bond status doesn’t look good for the long term prospects of the company. Will Twitter be able to monetise the social media site enough to meet their aggressive growth targets without damaging the brand? With the likes of Ello, will Twitter even be around in 20 years time? Leave a comment below, I’d love to know what you think.

 

 

Photo by Rosaura Ochoa/Flickr/CC BY 2.0