Twitter has been struggling in the market for quite some time now and while a recent analyst upgrade brought the stock up yesterday, there are still several questions about the company’s ability to grow. One of the biggest of those questions is “Will a new CEO affect the type of change that investors want to see?” Today, we’ll talk about why Twitter is struggling, what a new CEO may bring to the table, and what we can expect to see from the stock moving forward.
Why Is Twitter Having Such A Rough Time?
When stocks have a hard time, it generally has quite a bit to do with earnings. However, that’s not the case with Twitter. As a matter of fact, the company seems to have no problem increasing earnings quarter after quarter. The problem with Twitter lies in their active user data. For some reason, the company can’t seem to get new users in and keep them as active users on the social network. This was exactly the reason that the previous CEO of the company resigned and Jack Dorsey is acting as an interim CEO.
The CEO Shakeup Is Likely To End Soon
Jack Dorsey has been acting as interim CEO for quite some time now as the company continues to work to find a CEO to take his place. However, analysts covering Twitter all seem to think that the CEO shakeup will come to an end relatively soon. As a matter of fact, the SunTrust upgrade of TWTR was related to the fact that the analyst believes that TWTR will find a new CEO relatively soon – around Labor Day to be exact. Most analysts covering the stock – including myself – believe that the new, permanent CEO is going to be none other than the co-founder currently holding the interim position, Mr. Dorsey.
Will Dorsey Be Able To Make The Change Investors Want To See
The bottom line is that investors want to see Twitter user data climb. While earnings are great, without new users, earnings will eventually reach a plateau. So, can Dorsey do it? In my opinion, the answer is a big yes. While I don’t think that TWTR will ever grow to be a real competitor to Facebook, I don’t necessarily think that any other social network will do that either. However, under Dorsey’s leadership thus far, we’ve already seen changes in Google results. Twitter is starting to come up more in the results as was the goal of opening the Firehose feed to Google in the first place. The reality here is that Dorsey was a co-founder. There are few people that know TWTR and what TWTR needs better than him. So, if he does take the reigns as full time CEO, get ready for great news from the social network. If that’s not the case, I surely hope that whoever becomes the CEO has the skills he does with regard to planning for change and following through with those plans.
What Do You Think?
Where do you think TWTR is headed and why? Let us know in the comments below!