By Carly Forster
Social media giant Twitter Inc (NASDAQ:
Many investors blame Twitter’s decline on former CEO Dick Costolo, who officially stepped down from the position on July 1 of this year. Investors held Costolo responsible for Twitter’s ongoing deceleration of user growth and lack of innovations on its platform.
Twitter co-founder Jack Dorsey was named interim CEO until the board brings on a new replacement. Dorsey is also the CEO of Square, a mobile credit card payment company. With that said, SunTrust analyst
The analyst noted, “We think the company is likely to announce a Triumvirate of leadership, with: Jack Dorsey as CEO, Adam Bain as COO / President, and Ev Williams with more board influence (perhaps Chairman).” Since Dorsey is also still the CEO of Square, Peck believes it “is unclear how institutional investors will react to a permanent CEO who is also the CEO of a pre-IPO company.” Despite “the complexity of Twitter’s turnaround and product road map,” Peck believes “this Triumvirate structure may be the best solution.”
As such, Robert Peck reiterated a Neutral rating on Twitter on August 14, commenting, “We would look for the company to put more expertise on the board in media, technology, and operations. We think active involvement by these directors is critical to shaping Twitter’s future.”
Overall, Robert Peck has a 61% success rate recommending stocks and a +11.4% average return per recommendation when measured over a one-year horizon and no benchmark. He has rated Twitter 35 times since 2014, earning a 94% success rate recommending the company and a +40.8% average return per recommendation.
On the other hand, Jefferies analyst
On average, Brian Fitzgerald has a 54% success rate recommending stocks and a +15.0% average return per recommendation when measured over a one-year horizon and no benchmark. The analyst has rated Twitter 5 times this year with no success and a -22.1% average loss per recommendation.
Out of 26 analysts polled by
Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com