Twitter’s CEO is stepping down due to slower growth
June 11, 2015
Twitter Inc (TWTR.N) Chief Executive Officer Dick Costolo abruptly announced he was stepping down on Thursday amid increasing scrutiny of the company’s slow user growth and inability to attract advertisers at the same rate as its competitors.
The company’s shares jumped 7.7 percent to $38.60 following the news before paring gains to trade at $37.54.
Twitter has long struggled to gain users at the rate of other social media companies, such as Facebook Inc (FB.O) Instagram and Snapchat, according to The Wall Street Journal.
“Twitter has never been great at giving its users reasons to come back. While other social sites have introduced new features and functionality the past few years, Twitter has mostly stood still. The result has been excruciatingly slow user growth”, Forrester’s Elliott said.
Chris Sacca, one of Twitter’s earliest investors, said that Twitter would be an “instant fit” for Google (GOOGL.O) if it were to acquire the microblogging service.