Investors “Universally Negative” on Twitter as Five Executives Leave
Ashley Allen / 8 years ago
With its share price plummeting and five of its top executive leaving the company, future prospects for Twitter have been branded as “universally negative” by investors, Business Insider reports. The departures were confirmed by new CEO Jack Dorsey on Twitter.
Was really hoping to talk to Twitter employees about this later this week, but want to set the record straight now: pic.twitter.com/PcpRyTzOlW
— jack (@jack) January 25, 2016
Head of Product Kevin Weil, Head of Media Katie Jacobs Stanton, Head of Engineering Alex Roetter, Head of HR Skip Schipper, and Head of Vine Jason Toff have all abandoned ship, the latter to return to work for Google.
Following the news, and reports that Twitter’s share price had dropped further to $17, Bob Peck ar SunTrust said, “Investors we speak with are almost universally negative on Twitter and its prospects.” SunTrust currently rates Twitter shares as ‘buy’.
“While we may not be the sharpest tools in the shed, we don’t see how the departure of the heads of three major business divisions can be viewed as a positive in the middle of an attempted business turnaround,” added Scott Devitt at Stifel, which has also downgraded Twitter from ‘hold’ to ‘buy’.
The appointment of Dorsey as Twitter CEO was hoped to correct the company’s downward spiral – shares have dropped by 50% over the past year – but his short tenure has seen the situation only worsen.
