Twitter: Jack Dorsey's Departure Was Necessary, But Not A Definite Fix

 

  • Twitter CEO and Co-Founder Jack Dorsey steps down immediately replaced by the relatively unknown current CTO.
  • The social media company is on the cusp of game-changing subscription services and could use a focused CEO.
  • The stock is a buy trading at less than 6x forward EV/S, but the CEO change is no guarantee of immediate success.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The big market moving news of the day was that Twitter (TWTR) CEO Jack Dorsey stepped down immediately. The stock is now down on the day, as the market probably wanted an external candidate or an outright sell of the business for a quick gain. My investment thesis remains Bullish on the stock looking for focused leadership to build out the subscription business to accelerate growth.

Read the full article on Seeking Alpha. 

Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Update - Dec. 7

Interesting deal by the new CEO. Definitely looking forward to the management team now being unleashed to monetize the service. The stock shouldn't trade at the yearly lows. 

  • Twitter (NYSE:TWTR) made the first acquisition of the Parag Agrawal era when it said on Tuesday it has bought Quill, a messaging service that had positioned itself as a potential rival to Slack.
  • Nick Caldwell, Twitter's (TWTR) general manager for core technology, said in a set of tweets that Quill is "a fresher, more deliberate way to communicate," and that Quill would help Twitter "make messaging tools like DMs [direct messages] a more useful and expressive way people can have conversations on the service."
Finviz Chart


Update - Dec. 1

For once, Cathie Wood actually bought a beaten down stock. Her funds bought 1.1 million shares of Twitter. 

-Twitter touched a 2021 low of $43 yesterday, and Wood grabbed shares split across three of her actively managed ETFs. Wood's flagship fund ARK Innovation ETF (NYSEARCA:ARKK), led the charge buying up 623K shares, while ARK Next Generation Internet ETF (NYSEARCA:ARKW) amassed just under 162K shares and ARK Fintech Innovation ETF (NYSEARCA:ARKF) purchased 327K shares.

Finviz Chart

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