Twitter market value jumps more than $4 billion on news Jack Dorsey is stepping down as CEO; gains since erased

Jack dorsey speaks onstage at a bitcoin conference
Jack Dorsey. MARCO BELLO/AFP via Getty Images
  • Twitter stock jumped as much as 11% on news CEO Jack Dorsey is stepping down.
  • Parag Agrawal, who has been Twitter’s CTO since 2017, will be the company’s new CEO effective immediately.
  • Shares wound up erasing all gains after a trading halt.

Twitter stock sharply jumped Monday as the company said CEO Jack Dorsey is stepping down. Parag Agrawal, who has been Twitter’s CTO since 2017, will be the company’s new CEO effective immediately.

Shares climbed as much as 11%, to $US52.27 ($AU73), before trading was temporarily halted for pending news. That amounted to $US4.2 ($AU6) billion of market capitalization added at intraday highs. Twitter stock had already pared gains before a trading halt, and ended up erasing the entire gain by mid-day.

Dorsey also serves as CEO of Square, a payments technology and services company.

CNBC noted Twitter stakeholder Elliott Management last year wanted to replace Dorsey as CEO before the investment firm reached a deal with Twitter’s management.

Elliott Management founder and billionaire investor Paul Singer has previously called for Dorsey to step down from one of his CEO roles, wondering if Dorsey should lead both companies.