Twitter Inc (NYSE: TWTR)
What is there left to say about Twitter? The company has been in the midst of a free fall for quite some time now, and it doesn’t seem like it’s going to reach the bottom any time soon. In my opinion, the brunt of the company’s problems lies with its CEO choices. The bottom line is that the past 2 CEOs we’ve seen from the company have a fundamental lack of care and ability when it comes to making a social network run, and that shows in the results we’ve seen. Today, we’ll talk a bit about Jack Dorsey, the current CEO of TWTR, why he’s not the right guy for the job, and why investors should start calling for a new CEO.
Jack Dorsey: The CEO Without A Care In The World
Jack Dorsey, the current CEO of TWTR has a long history with the company. In fact, if you look back to the beginning, Dorsey was one of the founders of the company. However, his first run as CEO of the company should have told us all we needed to know. You see, many people won’t remember, however, the reality is that Dorsey held the position as the leader of TWTR in the past. His last run lasted about 2 years, in which time, he made incredibly bad choices.
At the end of his 2 year run, Jack was finally fired from Twitter, and for good reason. In his young age, he seemed to want to learn about everything, that is, with the exception of how to properly run TWTR. During his first run as CEO, Dorsey was infatuated with learning how to draw, he loved to party, and several other extra-curricular activities took his time and attention. While there is absolutely no problem with enjoying life and the extra-curricular activities that come along with it, there is a problem when these activities start to get in the way of your job – and that’s exactly what we saw from Dorsey. In fact, others that worked with him at TWTR noticed that he just didn’t seem focused on the task at hand. So, off he went, and a new CEO was brought into the mess he created.
Can We Expect Much More This Time Around?
When Dick Costolo resigned as the CEO of TWTR, investors started to call for Dorsey. They wanted Dorsey not only to be the interim leader of the company, but to take on the long-term role. They believed that since he was one of the founders, he would have what it takes to turn the company around. Unfortunately, they were sorely mistaken. The reality is that when we forget about history, it tends to repeat itself. That’s exactly what we’re seeing at the moment.
I will say that now that Dorsey is older, he seems to understand the importance of work. However, that doesn’t mean that he is solely focused on TWTR. In fact, at the moment, he has a fundamental lack of focus. The truth is that Dorsey is currently the CEO of Square and Twitter at the same time. Sure, I get it, he’s trying to follow in the footsteps of Jobs; the problem is Dorsey isn’t Jobs! Between the two companies, he doesn’t seem to have the time to focus on Twitter, and I don’t think he cares to either.
What We’ve Seen From Dorsey Since He Came Back As CEO
I’m sure I’m going to get plenty of emails about how Dorsey is a good guy and he is a great CEO. However, if you take a moment to look at the results we’ve seen from him since he’s come back as the leader of the company, it’s not hard to figure out that while Dorsey may be a good guy, he is bad for TWTR. Since he took on the role, we haven’t seen any movement in the company’s biggest problem – user data. The truth is, this problem wouldn’t be hard to fix. As a website owner myself, I can tell you that when you step back and focus on the user, your numbers go up! However, Dorsey hasn’t done that. Instead, he has focused on making conditions better for advertisers, increasing the value of each user by displaying better and more ads. The problem with this is that more ads drive users away, and that’s what we’re seeing. Daily active user numbers at TWTR are falling, and that’s a HUGE problem!
The Bottom Line
I know that investors wanted to see Dorsey in the leadership role, but sometimes investors push for the wrong things, and this is one of those times. While Dorsey seems to be doing a great job at Square, he’s dropping the ball at TWTR and investors shouldn’t stand for it. The bottom line is that it’s time to call for a new CEO, one that will focus on the problems at hand and solve them. Until this happens, investing in TWTR is likely a losing battle. We shouldn’t let this problem persist for 2 years this time, it needs to be solved now!
What Do You Think?
Do you think it’s time for a new CEO at TWTR? Let us know your opinion in the comments below!
[Image Courtesy of Pixabay]