Twitter Inc. has drawn a lot of publicity over the last few weeks. The firm has been forming new ties and making renovations on most of its fronts. Considering this alone, one could easily be forgiven for thinking that all is fine with the microblogging entity. However, with its falling popularity and open-ended leadership, not to mention an unfriendly stock market, Twitter is actually having a difficult time.
For years Twitter has been having trouble with its user growth and image. From its highs last year, its stock has lost around 50 percent of its value.
No Good News for Twitter Inc.
Investors have grown tired with Twitter’s unending search for a suitable Chief Executive Officer. The online entity’s dwindling user base and lack of growth has left shareholders quite unhappy. Analysts seemed sure that the company would have made a decision by Labor Day. Yet, Twitter still stands without official leader.
Reuters reports that the company has already lost a number of stronghold workers. About 25 have been poached by Uber. Lyft has gained at least fifteen employees from Twitter. It is not merely investors who have jumped ship, but employees are also unsettled by the company’s lack of direction. Top engineers and managers from the firm see no future for themselves in the entity. Even CFO Mike Gupta announced his resignation on Tuesday. Former CEO Dick Costolo reigned his lead after five year of heading the firm.
“They just need to get someone in there,” says Victor Anthony from Axiom Capital. “At this point, any CEO that comes in with experience and a good, solid track record I think investors will be in favor of.”
Twitter is Losing on All Fronts
Twitter will most likely have to find someone from outside. Its interim CEO and co-founder Jack Dorsey is reported to have declined the position to lead. This was most likely due to him currently being the chief exec of another firm, Square. Square is a rapidly growing mobile payments firm. It is expected to go public within the next year. Investors would not be comfortable with a man who has his eggs placed in two major baskets.
“He’ll have to choose,” Anthony relays, “There’s no way investors will give him a pass and allow to remain CEO of both companies.”
Dorsey was widely suspected to be the most ideal candidate to run the firm.
One of the likely potential leaders of the microblogging entity has been said to be Adam Bain – Twitter’s chief of revenue. Jim Lanzone, CBS’s Interactive CEO, and Padmasree Warrior are also said to be in the running.