Twitter CEO Dick Costolo’s seat is warming up.
Robert Peck, analyst at Sun Trust, was on CNBC today and said, “We think there’s a good chance he’s not there in a year.” Peck also said this was the number one question he’s getting from institutional shareholders nowadays.
Peck doesn’t really have any source, or reason to believe this is going to happen. He just sort of said it.
Twitter shares are up 4% today, and part of the spike might be due to these comments. The stock is at $US38.66, which is still down 44% from its peak of $US69 in January.
Costolo has been under pressure, largely because of the drop in the share price, and because of its inability to gain monthly active users.
Costolo’s trust recently sold shares. We reached out to a major shareholder in the company to get a reaction to the share sale. The response was stunningly negative:
Selling stock speaks louder than any words. As the CEO, how do you look the employees in the eye when you are busy grabbing a lifeboat? He has lost their respect, and obviously the respect of the market. The people who work at Twitter know the potential, and they know he is an obstacle to achieving it. He shouldn’t be running the company anymore.
This reaction shows that investors are low on patience with Costolo and his run as CEO.
Peck suggested that there was a long list of people that could take over. He mentioned Ross Levinsohn as a great CEO because of his media background. He also suggested Neal Mohan, or Omid Kordestani from Google could take over.
Peck has been the axe on Twitter. He made the first mega-bull call on the stock before it IPO’d. He then shifted his tone as the stock shot to the moon.
Business Insider Emails & Alerts
Site highlights each day to your inbox.