Why Is Everyone Talking About Twitter Stock?
On November 29, Twitter’s stock went up and down a lot. It was going up when the CEO announced that he would be resigning. Then it went back down when people found out that he had left.
Some people say that Dorsey’s departure will be good for Twitter because they think his leadership led to its decline. Other people say that he did a great job at Twitter and should not have left. Let’s look back at how Dorsey did when he was there and see if this change will help or hurt the company.
Dorsey’s History With Twitter
Jack Dorsey started Twitter, and he was the CEO. But other people thought he couldn’t be a good CEO because he did other things, so they let him go. He started Square later and is still the CEO today.
However, Costolo had trouble growing Twitter’s users and revenue after its public debut. In 2015, he stepped down. He is not CEO of Twitter anymore but still is CEO of Square.
What Did Dorsey Change at Twitter?
When Dorsey took over, people were not using Twitter very often. Costolo wanted the number of users to go up from 185 million to 400 million by 2013. But when they finished in 2013, there were only 241 million users on Twitter. When Dorsey returned, there was no significant change in how many people used Twitter.
Twitter stopped showing the number of MAUs. They started using another number, called mDAUs. The new number of mDAUs is lower than they used to establish accounts inflating the numbers before. Twitter now has 126 million mDAUs, which went up to 192 million at the end of 2020 and 211 million by September 2021.
Twitter said it is growing because people can talk about current events on Twitter. And there are new ad formats with more focused targeting methods.
The Twitter company did not stop when there was a pandemic. The company can grow its monthly active users to over 315 million in the next three years and also increase its annual revenue to at least $7.5 billion in that period.
Twitter has said that it will grow because of new products. But the new products still feel like they are trying to be like other social media platforms.
These innovations include “Fleets,” organized “topics” for tweets, a new tipping feature that now supports Bitcoin (CRYPTO: BTC), and subscriptions for top accounts.
So Why Is Dorsey Stepping Down?
Twitter’s CEO left the company. He said that it was hard to grow with a founder-led company. We need a change because it is a “single point of failure”.
The board unanimously approved the new CEO, Parag Agrawal. He has been behind our critical decisions before and helped turn the company around.
Dorsey did not mention Square, but he left Twitter. Dorsey owns more shares of Square than Twitter, and the company has been getting more significant to keep up with other companies like PayPal and Adyen.
Twitter is an excellent place to say what you want. But the co-founder said that Twitter’s goal was not to be bound by the First Amendment. That means that Twitter might start censoring people shortly.
Should You Still Invest In Twitter?
Twitter’s latest report made investors sad. They had to pay more money in expenses and roll out new products. After that decline, I advised people not to invest in Twitter because it is too expensive and has too many ambitious goals. Dorsey’s departure raises new questions for the business, so for now, I still think you should wait before buying shares of Twitter.
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