NEW YORK (TheStreet) -- Twitter (TWTR) - Get Report announced on Thursday that it would be shutting down Vine, its three-year-old platform that allows users to upload six-second videos.

"Why would you kill it when it's popular with millennials?" Fox Business' Stuart Varney asked on Friday morning's "Varney & Company." 

Twitter is killing Vine because it has "mismanaged this company," Circle Squared Alternative Investment president and special guest on the show Jeff Sica answered. "They've continued to spend money on what they shouldn't."

Twitter failed where Instagram and Snapchat have succeeded, Sica said. "If you look at what Instagram has done and what Snapchat has done, they have found a way to integrate this type of innovation. Twitter letting go of Vine was a colossal mistake."

The struggling social media platform had reportedly received takeover interest from Salesforce.com (CRM) and Alphabet's (GOOGL) Google unit, but they have both lost interest. Walt Disney (DIS) may still be interested in acquiring Twitter, Betaville reported on Tuesday.

"If the management is wondering why they can't get acquired at this price, it's because they've made decisions like that," Sica claimed. 

Twitter also announced Thursday that it would be cutting its workforce by 9%. 

Before Thursday's opening bell, Twitter reported 2016 third quarter earnings of 13 cents per share, above estimates of 9 cents per share. Revenue rose by 8% year-over-year to $616 million and topped expectations of $606 million.

Shares of Twitter were higher in mid-morning trading on Friday. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Twitter as a Hold with a ratings score of C-. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

You can view the full analysis from the report here: TWTR

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