Twitter Shares Drop As Wall Street Waits on CEO Appointment

“We think the slowdown in users sort of caught them by surprise”. As recently as April, the stock traded above the $50 handle – the subsequent plunge in share prices helped instigate an eventual move in management. In other words, Dorsey subtlety left the door open to run both companies simultaneously.

Dorsey took over as Twitter‘s interim CEO in July, replacing former stand-up comedian and veteran entrepreneur Dick Costolo.

Dorsey is expected to continue as CEO of Square, the e-payments company. And while there has been at least one member of Twitter’s board who has questioned Dorsey’s ability to split his duties as head of two companies (he’s also the CEO of Square, the mobile payments company he co-founded), he was always seen as the favorite candidate for the position.

The board has apparently also been considering Adam Bain, Twitter’s head of revenue and partnerships, though reports suggested he wouldn’t put himself forward for the job unless Dorsey stated he didn’t want it himself.

The anxious microblogging site’s cofounder Jack Dorsey could turn out to be permanent ceo after bringing the rudder traveling on an intervening time manner three months period much earlier, according to an account on Wednesday. Upon stepping down, Costolo praised Dorsey in a Bloomberg interview, calling him the “inventor of the product” and saying that he possesses “this fluency about the way he thinks about the product…that’s nearly remarkable”. When stacked up against Faceboo, acomparison that may be unjust but is unavoidable nonetheless, Twitter’s anemic user growth really hurts. The company has frustrated investors since its IPO with stagnated growth, an all-time low stock price in August, and this current embroiled CEO search.

“We went on record on September 29 stating that a dual CEO is not ideal, nor are the comparisons to Steve Jobs and Elon Musk in justifying it”, said an analyst with Monness Crespi & Hardt. As of June, Twitter said it had 316 million monthly active users. The shares rallied after Re/Code’s report came out to gain $1.35, or more than 5 percent, closing Wednesday at $26.94 in an apparent vote of confidence in Dorsey.