Twitter is in a rough position, with the stock dropping once again this quarter from £33 to £23 following poor earnings and future plans. On the chopping board is chief executive Dick Costolo, but internally it doesn’t seem like a serious suggestion to look for a new CEO.
Co-founder of Twitter Biz Stone claims the executives regularly joke about Costolo’s imminent replacement, not taking heed of letters from investors. “You are talking about people who think quarterly and if a percent off that quarter, it's like: "Fire the CEO," and that's crazy,” Stone said to IBTimes UK.
Even though short term investors have plagued more than a few companies with their incessant push for profitability and security, Twitter has been doing poorly for a few years, not a few quarters.
Twitter stock opened in November 8, 2013 for £27 per share, it has not been a great two years for investors that bet big on the microblogging platform.
The pressure is also being piled by investors that care greatly about the future of Twitter, like early investor Chris Sacca, who claims Google should look to buy the company to achieve new advertising growth. Sacca is not the typical Wall Street quarter maniac, but sees the results from the last two years as a worrying sign for the future.
It is not clear how much of the blame can be put on Costolo. Revenues have been decent for the most part, even though Twitter is no advertising behemoth like Facebook or Google. It has also grown out its business from the microblogging core, with Vine and Periscope acquisitions, putting a big focus on video and mobile content.
The problem is Twitter has never shown a major profit or enough growth in user-base to warrant valuing it so highly. The hype has died down a bit and the recent quarter should be enough for some investors to move away from Twitter, allowing them to continue building the company without being haggled every quarter for major improvements.