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Proof -- Shareholders Extremely Happy to See Costolo Leave as CEO of Twitter
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Twitter Inc. (NYSE: TWTR) broke huge news after the markets closed on Thursday. Dick Costolo, chief executive officer, announced that he will be stepping down from this position as CEO, but he will still remain on the board of directors. This move will be effective on July 1, 2015.
Originally, Costolo stepped into this CEO role in 2010, replacing co-founder Evan Williams.
Jack Dorsey, co-founder and chairman of the board, will serve as the interim CEO for the time being. Dorsey will continue to serve as the CEO of Square Inc. Previously, Dorsey was served as president and CEO of Twitter from May 2007 to October 2008.
One key thing to note about Dorsey taking over is that he is not receiving any compensation for his role as the interim CEO.
Costolo has been under constant pressure and faced criticism, from what now feels like since day 1 after coming public. The main points that his critics have made were a failure monetize Twitter and slowing user growth, to name a couple.
In the SEC filing the company said:
Twitter also today reaffirmed its outlook for the second quarter of 2015. The Company continues to expect revenue to be in the range of $470 million to $485 million and adjusted EBITDA to be in the range of $97 million to $102 million. Stock-based compensation expense is expected to be in the range of $190 million to $200 million, excluding the impact of equity awards that may be granted in connection with potential future acquisitions.
Shares of Twitter closed Thursday relatively flat at $35.84 on a 52-week trading range $34.62 to $55.99. In Thursday’s after-hours trading session, shares jumped over 7% to $38.46. The stock has a consensus analyst price target of $47.63.
ALSO READ: Why This Analyst Team Sees Facebook Hitting All-Time Highs
How would you like to resign as CEO, not even name a permanent CEO, see the co-founder come back in for no compensation at all and see your stock rise. Here are our tweets on the matter:
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