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Twitter shares rally under suggestions that its CEO will not survive 2015

Twitter shares spiked by 4 percent yesterday, before closing up 3.67 percent. This was down ...
Newstalk
Newstalk

12.50 23 Dec 2014


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Twitter shares rally under sug...

Twitter shares rally under suggestions that its CEO will not survive 2015

Newstalk
Newstalk

12.50 23 Dec 2014


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Twitter shares spiked by 4 percent yesterday, before closing up 3.67 percent. This was down to a positive rating from a stock market research company, and comments made by Bob Peck of SunTrust.

He indicated to CNBC that the company's current CEO Dick Costolo may not be leading the company by the end of 2015.

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When questioned about the current CEO's future, the analyst commented: "We think there's a good chance he's not there within a year," he also named some potential successors - noting that there are "a lot of interesting characters out there."

He says that a change to a "large media personality or a well known person" would be received very well by the market.  

The share price rose soon after his comments aired.

Twitter's stock in the last 5 days - Google / Yahoo Finance

In-spite of his opinions about the CEO - Mr Peck speaks positively about the future prospects of the company. On a macro-level it has been struggling to stay ahead of the curve in the mobile market.

Instagram announced that it now has 16m more users than Twitter. Apps like Snapchat are also eating into its screen-time.

User growth increases have slowed, and more worryingly, the time that users actually spend on the website and app has fallen.

In light of these facts stock has taken a hit over the last three months.

Twitter's stock in the last 3 months - Google / Yahoo Finance

Bob Peck believes that the company can buck this trend in the first or second quarter of 2015.


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