Twitter, Inc. (NYSE:TWTR) – Will the company’s chief executive, Jack Dorsey, lose his job?

Twitter, Inc. (NYSE:TWTR) – Will the company’s chief executive, Jack Dorsey, lose his job?

Twitter, Inc. (NYSE:TWTR) – Will the company’s chief executive, Jack Dorsey, lose his job?

Last week, Twitter’s CEO, Jack Dorsey, faced calls for his ouster from an activist shareholder. Those calls came from Elliot Management’s boss Paul Singer, who recently took a $1 billion stake in the social media company and has nominated four new board members.

Singer’s main complaint seems to be that Dorsey currently serves as CEO both of Twitter and Square, the financial technology provider. Dorsey has a far larger financial interest in Square, and Singer believes that prevents him from giving Twitter the attention it deserves, despite recent growth in both users and revenue. 

Yes, Twitter’s performance has lagged behind its tech siblings. For example, Twitter’s stock price is down a little over 6 percent since Dorsey returned as CEO in 2015. For comparison, Facebook’s stock is up over 120 percent during that same time frame. 

Musk is clearly a fan of Twitter, using the platform to engage with both fans and critics, as well as to promote the companies he leads. He is also presumably friendly with Dorsey, even appearing at a recent company meeting. The outspoken CEO has also never been shy about taking on financial critics, especially those who short Tesla’s stock. 

There’s some irony in that when Dorsey returned to Twitter, Musk advised him against running two companies. Now it appears Musk is firmly in Dorsey’s corner. 

Here’s the reality, however–unless Musk plans to drop some of his cash into Twitter and nominate his own slate of directors, his words aren’t likely to change much. In fact, some anaylsts are already assuming Dorsey will be out by the company’s annual meeting, usually held in May. To that end, the company’s stock price was up 8 percent on the news of Elliot’s stake. 

I actually think that the point here is similar to what I wrote about Disney’s CEO Bob Iger stepping down: sometimes leading means getting out of the way.

I don’t say that to imply Dorsey is a poor leader, or that he hasn’t done a good job at Twitter, but  I will say is that it’s hard to argue that Twitter has lagged behind its peers. It just today announced it is testing a new feature called “Fleets,” which is basically Instagram Stories. It also has struggled to figure out how to deal with fake news and misinformation that regularly spreads on its platform. Oh, and let’s not forget the bots and trolls. 

Sure, you could argue that Facebook has the same issues, and it does, but it’s worth asking whether or not Twitter would benefit from a full-time, fully-engaged leader. That doesn’t mean that Dorsey has failed, it just means it might be time to redefine what success really looks like. 

That, by the way, is a lesson every entrepreneur should consider.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 39.28.

The projected lower bound is: 32.88.

The projected closing price is: 36.08.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.1371. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.99. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -26. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 1.070 at 36.000. Volume was 27% below average (neutral) and Bollinger Bands were 9% wider than normal.

Open     High      Low     Close     Volume___
35.530 36.000 34.770 36.000 2,850,757
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 35.60 34.25 36.32
Volatility: 73 57 53
Volume: 5,263,926 4,064,372 3,174,968

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TWITTER INC is currently 0.9% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 3 periods.

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