Reports broke yesterday that Twitter TWTR co-founder Jack Dorsey, who has been serving as interim CEO since the departure of Dick Costolo, will be named the company's next permanent CEO after a three-month long search to fill the position.
After the news spread on Wednesday, shares of TWTR spiked and the stock closed up over 5%. However, it seems investors are not actually responding well to the Dorsey news, as share prices have fallen nearly 6% in early morning trading Thursday.
The three month search for a new CEO was longer than many expected, although Dorsey was a leading candidate the whole time. Regardless, the social media world has had a loud reaction to the news that the search is finally over, and we've highlighted some of our favorite comments below.
Some notable investors were quick to welcome back Dorsey:
. @Jack , knock 'em dead, you know what to do. Don't forget your real peeps--those who post and respond! $TWTR- Jim Cramer (@jimcramer) September 30, 2015
However, it doesn't look the market is so welcoming:
$twtr getting twittered as no likey CEO with ungroomed beard...reversing yesterday's pop.- Serge Berger (@SteadyTrader) October 1, 2015
Others were confused by today's downward movement:
$TWTR that's crazy we get STABILITY within the company and ALL SHAREHOLDERS BAIL ...... this has insane profit making potential- Brent Spencer (@spenc2u) Oct. 1 at 09:27 AM
Some also focused on the fact that Dorsey is a very busy man. In fact, reports are indicating that he will continue to operate Square, a payment company that he also founded and currently serves as CEO at:
$TWTR Part time Dorsey would mean no change from past 3 months: disappointing- Cyrus (@Cyruss) Oct. 1 at 09:09 AM
$TWTR sad story. who would want to invest in a company that took wks to find a CEO then end up put the incompetent person as the CEO short.- cybercash28 (@cybercash28) Oct. 1 at 09:38 AM
Tensions were high, as Chris Sacca, a notable investor in Twitter, publicly threw some shots at those who are shorting Twitter:
I'm told there are 40 million $TWTR shares short right now. Most in company history. Let's see how that works out for them.- Chris Sacca (@sacca) September 30, 2015
It's probably never a good sign when one of the most prominent investors in your company is picking fights with short sellers on your own messaging platform, and that's exactly what Twitter has going on here. Today's price movement is only the latest bad day in what has been a horrible couple of years for Twitter, and the Dorsey appointment could leave a bad taste in the mouths of many investors for a while.
If there's any real issue with Dorsey at CEO it is the uncertainty. Will he be able to manage his time at both Square and Twitter? Will the founder of the company be able to shake things up as is so desperately needed? These questions remain to be seen, and with a Zacks Rank #3 (Hold), things just are not very clear for investors right now.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.