Twitter Inc. (NYSE:TWTR) shares have seen a sharp fall of over 7% yesterday, following the executive changes at the company. Recently, the company has made significant changes to its executive’s positions, which is a part of turnaround effort undertaken by its CEO for addressing the issue of declining subscriber from quite some time. And now, Katie Jacobs Stanton has been moved to the position of global media boss at the company while the position of chief communications officer has been taken over by Gabriel Stricker.
Management changes to fuel user growth
While Twitter is known for making frequent changes to its management, but the investors’ behavior towards these changes is quite unpredictable and this is probably the reason for the recent downfall as they can have apprehensions with regards to their ability of managing company well. The share price of the company went as high as $70, but has fallen back to less than $40.
Stanton has considerable experience of working with the media personalities from her experience of working with the US State Department and in the White House.
Recently, several management changes were noticed including the exit of chief operating officer, Ali Rowghani and CFO Mike Gupta. Also, the micro-blogging service promoted its former sales chief, Adam Bain, as head of business development.
Buying Twitter: Wise or not?
The micro-blogging company is banking heavily on the new recruits. The company aims at enhancing its user growth by making more and more people spend quality time on the micro-blogging site interacting with each other.
Victor Anthony, an analyst at Topeka Capital reiterated Buy on Twitter Inc. (NYSE:TWTR), and has set $60.00 as the price target, in a research note issued recently. There is a wave of excitement among the Twitter users and with the season of Football World Cup the opportunities for the company are huge. The company has benefited from the high user engagement during the World Cup, which is helping it to gain new advertising assignments. All these and few acquisitions undertaken by the company have led Anthony to conclude Twitter as a profitable buying option.
Twitter will report its earnings on July 29 and is expected to lose $0.01 per share on revenue of $282.44 million.