Still Waiting For That New Twitter CEO To Be Announced
What's going on?
Twitter stock rallied almost 2% on suggestions that a new CEO might be appointed following a board meeting that took place yesterday.
What does this mean?
Twitter stock has sold off 22% since former CEO Dick Costolo left in July. While some of the sell-off is down to the overall move in the market, much has to do with Twitter’s stagnating user growth. It needs to enact a turnaround strategy and that’s tough to do without a CEO.Some are predicting that the new CEO would be co-founder Jack Dorsey (who is currently ‘acting’ CEO). It’s a move that would likely be popular with investors. However, he is currently the CEO of mobile payments firm Square, and it would be controversial to appoint a CEO that also has another job.
Why should I care?
Regardless of who becomes CEO, Twitter needs to start growing its user base again. They aim to do this by developing better products including, for example, a new feature that highlights tweets, photos and videos around a specific live event – e.g. you could watch a Twitter generated summary of the Super Bowl.
If a CEO appointment does occur in the near future, the stock could go up as the turnaround strategy becomes more tangible. So keep an eye out for any announcements in the coming days!
Originally posted as part of the Finimize daily email.
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