At one point, Twitter was one of my favorite stocks on the market. However, these days, I’m starting to grow more and more concerned about the company; and I think that there are tons of other investors that feel the same. For me, it all boils down to the CEO search. Ultimately, Twitter has been under the control of Jack Dorsey as the interim CEO for 100 days at this point. Experts expected the search to come to an end weeks ago, but that simply wasn’t the case. Today, we’ll talk about why Twitter is having such a hard time finding a new CEO, how it’s affecting their stock, what to expect moving forward, and how to take advantage of the trends.
Why Twitter’s Search Is Taking So Long
As mentioned above, Twitter has been without a CEO for 100 days at this point. That’s unheard of. However, in this particular case, it makes sense. The reality is that while Twitter is a massive company, it’s also a struggling company; which makes searching for a new CEO pretty tough. Here’s how I see it…
Twitter doesn’t just want anyone taking the company over. The CEO they’re searching for is one that will excite investors. This means that the new CEO will have to have extensive experience in the tech industry. Anyone they are looking for has built a name for themselves; which is a great thing until you look at what Twitter is asking them to do.
Essentially, Twitter is a struggling company. In fact, the previous CEO, Dick Costolo stepped down from the company because he couldn’t get user data under control. So, Twitter is asking a new person to fill the shoes that the last person couldn’t. However, no CEO that has built a name for themselves wants to take on this job. The reality is that Twitter is a sinking ship; and anyone in this position knows that the CEO will have to go down with the ship. With that said, I can’t think of anyone that would want to tarnish their name in an attempt to save this company.
This brings us to the current interim CEO, Jack Dorsey. He’s possibly the only executive qualified for the position. There’s only one caveat. Dorsey simply doesn’t have the time to take on the permanent role. In fact, he is already the permanent CEO of another company, known as Square. With Square going public soon, he’s already got a full time job and very big shoes to fill. While Dorsey was a co-founder of Twitter, I don’t see him stepping down from Square to try and save the sinking ship that is Twitter.
So, this leaves Twitter in the middle of a rock and a hard place. Any new CEO they would want to take the position likely wouldn’t want to fill the shoes; and the one person that would be willing is already too busy to do it! This is why it has taken 100 days to this point and is likely to take quite a bit longer moving forward. All the while, eager investors are waiting; and while they wait, they’re getting more and more upset and that’s dragging the stock down even further.
What To Expect Moving Forward
Unfortunately, I’m not expecting to see a new CEO at Twitter any time soon; and while we wait, Twitter is likely to continue diving down. After all, without someone that’s willing to lead the company, how can investors have any faith that the company is going to grow?
How Binary Options Traders Can Take Advantage Of The Trends
We know that Twitter is likely to continue falling overall. However, it is going to have its good days here and there. Therefore, I would wait until we start to see a small increase in the value of the stock on a good day. When this happens, be prepared to start purchasing puts the next day as the stock reacts to gains and continues falling.
What Do You Think?
Where do you think Twitter is headed and why? Let us know in the comments below!
[Image Courtesy of Rocket Post]