Twitter Inc will tell the world who its new CEO is before the market opens for the day on Monday, August 24. That’s the rumor on the street on Friday morning, and it’s causing shares in the social network to surge despite the pressure across the market. Twitter has been without a CEO since Dick Costolo left the firm on July 1. Jack Dorsey, who took over in the short term, is favored as his successor.
At time of writing shares in Twitter were selling for 26.47, up 1.81 percent for the morning so far. The rumor that the firm will soon install a permanent CEO doesn’t carry much weight because of the flood of rumors we’ve seen in recent months.The S&P 500 was down 0.66 percent at time of writing.
Twitter Inc picks a new CEO
Both Mr. Dorsey and head of Global Revenue Adam Bain are rumored to be involved in a major leadership change. That’s what Robert Peck of SunTrust Robinson Humphrey thinks will be the end result of the talks on leadership.
He reckons that Twitter will become a Triumvirate of sorts. Mr. Dorsey will lead as CEO, but will keep his job at Square, Mr. Bain will take a job as President. Ev Williams, one of the firm’s founders and CEO before Mr. Dorsey’s initial run, will apparently come back in to take the job of chairman.
A more recent story said that Google’s Chief Business Officer could take the job. Victor Anthony of Axiom Capital said that Omid Kordestani was in line for the job after the Google Alphabet change left him without a job.
Twitter Inc rumors are the only good thing going
In a market that wants to punish high growth stocks, the only thing that’s going to get Twitter going is rumors that it is not in fact dead. Jim Cramer doesn’t seem to think there’s much hope left for the firm after month and months of downright bad decision making.
Trip Chowdhry of Global Equities Research says the problem is much worse. He reckons that the social stock story is over. In a report published earlier this week he said that he though that mobility solutions, developed by firms like Tesla Motors, Google and Apple, are going to be the next big thing and the risk-taking money is likely to move out of firms like Twitter .
If Mr. Chowdhry is right in his assessment, even a great new CEO won’t be enough to fix Twitter. Jim Cramer, among others, has said that the best way to fix the firm is simply to sell it to big concern that could absorb its problems easily before fixing them.