Nankai Group - Dorsey Named Permanent Twitter CEO
Nankai Group: Twitter's interim CEO and co-founder, Jack Dorsey to become the company's permanent CEO.
TOKYO, JAPAN, October 13, 2015 (Newswire.com) - Nankai Group - Embattled social media company, Twitter, has announced that its interim CEO and co-founder, Jack Dorsey has been named permanent CEO after 3 months in the role vacated by Dick Costolo.
Dorsey will continue in his role as CEO of Square, the payments company he founded after leaving Twitter despite a declaration by the committee formed to search for a permanent replacement for Costolo.
While we think Dorsey in the top job can only be good for Twitter, we still think the company lacks the fundamental ability to define its role to new users. Costolo failed to articulate the company's long-term aims but Dorsey, as a co-founder, will likely have a clearer idea and vision of what the company's objectives should be.
Nankai Group, Analyst
“That declaration effectively said that the CEO role at Twitter was a full-time position and appeared to rule out Dorsey who many believed would never leave Square,” said a Nankai Group technology analyst.
“It appears that his continuation at Square wasn’t a deal breaker after all.”
Twitter has faced a torrid few months after investors punished its stock following the company’s last quarterly earnings report. Twitter beat expectations on revenues and earnings per share but showed its inability to grow the pace at which it adds monthly active users.
Nankai Group has held a sell rating on the stock for the last 12 months advising that investors sell in strength whenever possible but says Dorsey’s permanent appointment could herald a reversal in the company’s fortunes.
“While we think Dorsey in the top job can only be good for Twitter, we still think the company lacks the fundamental ability to define its role to new users. Costolo failed to articulate the company’s long-term aims but Dorsey, as a co-founder, will likely have a clearer idea and vision of what the company’s objectives should be,” concluded the Nankai Group analyst.