Twitter (TWTR) co-founder Jack Dorsey gave up his position as chief executive, a change that became “effective immediately” when it was announced on Nov. 29. Is Twitter stock now a buy?
A nearly 75% gain for the social-media platform during Dorse’s tenure as CEO lags far behind the more than 280% rally for Nasdaq and almost 140 per cent gain for S&P.
Twitter (ticker:TWTR) appointed Parag Agrawal, current chief technology officer, as CEO and a board member.
Dorsey will remain a member of the board until his term expires in 2022.
“I’ve decided to leave Twitter because I believe the company is ready to move on from its founders,” Dorsey said in a statement Monday. “My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead.”
The company also announced that current board member Bret Taylor was named independent chair of the board, succeeding Patrick Pichette.
In an email to staff posted on his Twitter account, Dorsey said he was leaving to help ensure the company could “break away from its founding and founders.” Dorsey cited the new appointments and his trust in the team’s potential as reasons for departing the role at this time.
not sure anyone has heard but,
I resigned from Twitter pic.twitter.com/G5tUkSSxkl
— jack⚡️ (@jack) November 29, 2021
Mr. Dorsey challenged corporate conventions with his nose-ring, long beard, and a wellness regime including yoga and eating only one meal a day.
But he came under pressure from investors, who felt Twitter was not getting the focus it needed while he was also running Square.
On Sunday, Mr. Dorsey tweeted, apparently unprompted: “I love Twitter.”
I love twitter
— jack⚡️ (@jack) November 28, 2021
Following the announcement by Jack Dorsey to step down as Twitter’s CEO, the stock price of the social media platform surged by 4.82 percent in the intra-day trading at the New York Stock Exchange.
Twitter’s share price was at $47.07 earlier on November 29 but surged soon after Dorsey announced leaving the social media platform.
The Twitter stock surged before falling lower after it emerged that CEO Dorsey is leaving his role. It closed with a loss of 2.7%. There are several negative technical indicators currently haunting Twitter stock.
It is currently trading well below both its 50-day and 200-day moving averages. Its relative strength line is also sliding. It is one of the bottom 14% of stocks tracked in terms of market performance over the past 12 months.
A lot is being said about the unmissable presence of Indian talent in the global tech space after Parag Agrawal was appointed as the chief executive officer (CEO) of Twitter on Monday. And industrialist Anand Mahindra did not miss out on the chorus, praising Indian-origin persons leading top tech companies in the world, terming it the “Indian CEO virus”.
“This is one pandemic that we are happy & proud to say originated in India. It’s the Indian CEO Virus… No vaccine against it (sic),” Mahindra tweeted.
Parag Agarwal joined Twitter in 2011 and was appointed as the company’s CTO in 2017. Before joining Twitter, Agarwal was has been a part of top US companies including Yahoo, Microsoft, and AT&T Labs.
Apart from Agarwal, the Twitter board also announced that Bret Taylor — a member of the company’s Board since 2016 — will be an Independent Chair of the Board with immediate effect.