So, the rumors turned out to be true — Twitter’s (NYSE: TWTR) founder and majestically-bearded CEO, Jack Dorsey, has officially left the building.
Replacing him is long-time Twitter alumnus and CTO Parag Agrawal, with Dorsey set to join the board.
But what does this mean for Twitter?
From an investor’s point of view, one hopes that it means change.
Twitter’s controversial ex-leader has had a complicated relationship with shareholders for some time now. Despite most users generally loving — or loving to hate — the product itself, innovation has never been free-flowing at Twitter HQ, while many investors feel that Dorsey spent too much love and time with his other family, Square.
Conversely, he certainly seemed like the least evil of the Silicon Valley rat pack, often advocating for the greater good of Twitter users, the environment, and more. However, this was at odds with actually making money and generating new users — something that Twitter hasn’t exactly been knocking out of the park.
Agrawal has a mountain to climb in order to meet Twitter’s aggressive goals, which were actually set by activist investor fund, Elliot Management. The microblogging company intends to have 315 million monetizable daily active users by the end of 2023 — it currently has roughly 211 million — and to at least double its annual revenue in that year.
Although founder-led businesses generally do better than their contemporaries stock-wise, this may be for the best. After all, Twitter’s stock has risen less than 10% overall since going public back in 2013, enduring a number of peaks and troughs in that time. A hands-on CEO with just one company to manage is better than a distracted one.
And so, during this tumultuous time, investors must keep an eye out for any changing targets, product innovation, or business pivots. Jack may be gone, but that doesn’t automatically right the ship.
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.