Monday, 25 January 2016

A shake up for a shape up at Twitter

Social media problem child Twitter announced over the weekend a major shake up in its management team saying that four major executives will be leaving the company. This comes in the wake of newly installed CEO Jack Dorsey's effort to help the company rise from the ashes by attracting new users with better features so as to increase the user base that has seen stagnate growth for quite some time. Dorsey, who was formerly the CEO and left the company to start a new venture, hasn't won over investors confidence just yet with many becoming impatient with the ailing social media company.

On the face of it, the move was to be expected after former CEO Dick Costolo left the company following mounting pressure that led to his resignation. The individuals leaving formed part of Costolo's team, who had they succeeded on their strategy would likely have still stayed around on account that shareholders wouldn't want to throw away good management.

As much as the hype happening around Twitter about the exodus filters through, I think its a necessary step needed and although Dorsey may be faced with questions over whether dissent within management remains, if a requirement to restore faith in the company means the need for them to become a leaner, meaner and sustainable outfit, it needs the appropriate changes that would fall in line with the rejuvenation of brand Twitter.

Speculation is rife that Rupert Murdoch's company, News Corp may be interested in buying a stake in the company but thus far rumours have been swept away for the time being by the media conglomerate. The move would certainly be advantageous for both companies as the synergies would allow for each one to benefit significantly with Twitter holding the key for News Corp reaching audience in an outlet that is becoming a dominant player in the sphere of  news and entertainment.

As an avid user of Twitter, I really hope that Mr Dorsey has the right strategy in place to help deal with the problems facing the company at present. I believe there is still much potential to be found within the social media space and this could be Twitter's chance to take the lead and show its competitors how much further social media can be expanded too, which ultimately could define the uniqueness that has escaped the company's grasp for some time. Here's to hoping...
After a turbulent few weeks stocks begin to raise

I wrote in a blog last week that most world indices were flirting with bear territory after investors had made a frantic flee to the sidelines over concerns over the deflationary risks the drop in oil presents to the global economy and the slowdown in China. However I did mention that the levels being reached were last seen in August last year when the same worries bothered the market. I was interested to see how they would react to those levels and said if they bounced strongly we could see a resurgence of bulls coming back into the fray.

It would seem as that this has now materialised and there is a feel of confidence in the air following the move which now opens the door to see whether this good run can be sustained over the short term in the closing days of January. It hasn't been a good month overall but a bounce of this magnitude may change the perspective of things and could lead to bullish optimism entering the market.
Posted by at

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )