Even Twitter's new 140-character policy can't save it from Wall Street

Twitter finally made a key change that most users actually want -- but it still wasn't enough to appease Wall Street.

Twitter stock fell as much as 4% in late morning trading on Tuesday, touching a new low even after the company officially announced plans to relax its 140-character policy by no longer counting images, polls and user names toward the limit. 

The announcement, which had been rumored for more than a week, did little to change Wall Street's increasingly negative impression of the stalled social media service.

Multiple analysts downgraded the stock on Tuesday with brutal investor notes shortly before the character limit change was announced. 

In a note titled "Hope Is Not a Strategy," MoffettNathanson analysts criticized Twitter's latest monetization efforts -- including its plans to make money off of users who don't log in to the service -- as "too little too late."

A note from James Cakmak, an analyst with Monness Crespi Hardt, was equally damning.

"Twitter has been frustrating to cover, not only because of its declining share value, but more so because of its vast potential that’s eroding by the day. Admittedly, as an avid user we’ve seen only incremental improvements to the experience when steep changes are needed," Cakmak wrote. "There is still time for a turnaround, but that window is closing."

TWTR data by YCharts

With the exception of a brief honeymoon period with Wall Street immediately following its IPO in late 2013, Twitter has struggled to woo investors who doubt its ability to re-ignite user growth.

Sure enough, Cakmak told Mashable by e-mail that the much-hyped character limit change "has no bearing" on his criticism of Twitter's turnaround efforts.

"This tweet format change is strictly a tweak for existing users and doesn’t change new user outlook," he says, "because their daily actives are holding firm anyway regardless."

Have something to add to this story? Share it in the comments.