Twitter Inc shares were trading strongly up in Monday’s pre-market as traders on Wall Street look forward to the reveal of a new CEO by the firm. Bob Peck of SunTrust Robinson said that the firm was likely to reveal a three-headed exec structure early this week in a report published on August 14. Wall Street is waiting to see the new Twitter with bated breath.
Twitter shares were up 1.27 percent to $29.44 at time of writing. In the five days of trading last week the firm’s shares gained more than 7 percent. Traders, hurt by the firm’s poor results and lack of a new CEO, are now betting that the social network will firm as it finally puts new leaders in place and plans for the future.
Twitter CEO divides roles
Mr. Peck, who published his report on Twitter last Friday, reckons that the firm will settle for a divided structure at the top. Peck told CNBC that he expects Jack Dorsey, the firm’s founder and the short-term CEO, right now, to take on the CEO chair full time.
That won’t be the only way in which the structure at the top changes according to Peck. Adam Bain, currently head of global sales for Twitter, will be the firm’s new president and Ev Williams will come in as chairman of the board. Mr. Williams is another of Twitter’s founders and once served as both CEO and chairman of the firm.
That structure won’t be as revolutionary as some traders were looking for. Many names have been associated with Twitter in recent weeks, and some would likely have preferred to see Sheryl Sandberg, or Adam Bain take the role in order to bring new life to the social network.
Mr. Peck reckons that “having him there in this triumvirate sort of position is probably a good second choice solution for this.” He thinks that taking Mr. Dorsey out of Square, a firm he also serves as CEO of right now, and letting him take the reins at Twitter full time, would be the best solution.
Twitter shares fight back
Poor earnings and a lack of a path forward have driven Twitter shares down firmly in recent weeks.
Wall Street is famously bad at rumor as the number of names that have been linked to the Twitter job can attest. It’s clear that the firm is a black box right now, and the decision making behind the CEO search has been opaque, a state that likely helped to hurt shares.