Twittered Out? Energizing Split and Not So Energized Economy

Twitter’s growing pains…

Image courtesy of smarnad/FreeDigitalPhotos.net

Image courtesy of smarnad/FreeDigitalPhotos.net

Twitter is losing its chirp. According to its quarterly earnings, the San Francisco based company showed growth of the social media platform was slowing. The company posted a loss of $132.4 million. Last year there was a time when it was once considered one of the world’s most prized and valuable stocks to own. But since the beginning of the year, the site has lost approximately a third of its value. It did boast 255 million users by the end of March – which is nothing to chirp at (or nothing at which to chirp, for those on patrol at the grammar police) especially since that’s a 25% increase over the same period last year. However, Wall Street felt that number should have been higher by about two million. And yes, that matters a lot…especially to shareholders.

Energizer can do the splits…

Image courtesy of digitalart/FreeDigitalPhotos.net

Image courtesy of digitalart/FreeDigitalPhotos.net

Big news today from the folks who brought you the chronically drum beating bunny. St. Louis based Energizer Holdings will officially split into two publicly traded companies. But they’ll still remain friends. It’s the trendy thing to do now. All the cool big companies are doing it. It’s an attempt to focus on their best assets. Energizer, naturally, plans to keep its focus on batteries and flashlights. The other company will concentrate on household items including Schick and Edge grooming products, Playtex and Hawaiian Tropic products – all very useful items. Energizer alone pulled in $1.9 billion in revenue last year while the household division pulled in $2.6 billion. The split will be a tax-free spinoff to existing shareholders. And doesn’t everything sound better when they’re tax-free.

Economy slowdown showdown…

Image courtesy of m_bartosch/FreeDigitalPhotos.net

Image courtesy of m_bartosch/FreeDigitalPhotos.net

The US economy slowed during the first three months of the year, according to a new report released by the Commerce Department. An unusually harsh the winter that shamelessly wreaked havoc on our psyches and our fragile economy is being blamed. But you’ve heard all this before. The real news here is just how badly it slowed to –  a 0.1% annual rate. Think grinding halt. Almost. In fact it was the worst performance in three years and came in way below expert predictions of 1.1%. The good news is that the numbers aren’t totally accurate because they are based on incomplete data. Allegedly. Also these figures tend to improve in warmer weather. Just like my moods.

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