Twitter Inc shares were very volatile on Monday morning, along with the rest of the market, as Wall Street punished stocks that were based on future growth. Twitter was rumored to be ready to reveal a new CEO over the weekend. Its failure to do so may have pushed shares down further on Monday.
At time of writing shares in the social network were down 7.5 percent to 23.95. Twitter hit all time lows of $21.01 early on Monday morning. The chaos of Wall Street, based on problems in China, appears to be the real culprit.
Twitter Inc still doesn’t have a CEO
Though most of the pain in Twitter shares on Monday is down to the chaos across the market, the firm is very weak for other reasons. Last week Bob Peck of SunTrust said that he expected Twitter’s CEO pick to come sooner rather than later. The value of the firm popped on Friday, amid market chaos, on the back of rumors that the CEO pick would be made and revealed at the weekend.
On Monday morning it’s clear that that hasn’t happened. Tied to the collapse in value of shares that are sitting on much more stable fundamentals, shares have fallen to all time lows and are now firmly below the IPO price of $26 that caused dismay last week.
Mr. Peck said that he was looking for Jack Dorsey to take the role of CEO at the firm, while Adam Bain, now the head of global sales at Twitter, would jump in as President. Ev Williams, a former Twitter CEO, will, in Peck’s view, become chairman of the board.
The “Triumvirate” that Mr. Peck said was coming has not yet arrived, and traders are selling out of Twitter shares right now as a result.
Looking forward to Twitter
Not everyone thinks Twitter is doomed despite the moves on this morning’s market. Shares were trading above their open price just 30 minutes after the market opened. It’s still well below the price at which is closed on Friday afternoon.
Nobody knows where the market is going to head this week, and the trend in stock prices is going to be the biggest factor in deciding the movement in the value of Twitter in the coming days. That will discount the effect of a CEO announcement, or a lack thereof, in the coming days.
For Twitter the business, and its earnings, the lack of a CEO is likely the most important factor. Despite the collapse in stock markets across the world, that is going to define the firm, and the value of its shares, in the months ahead.