Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Twitter Inc. (TWTR): The Good and the Bad about Dick Costolo Leadership Style

Twitter Inc. (NYSE:TWTR) has been at crossroads this year to explain its vision amidst concerns that the company’s growth might have stagnated after going public. In a series of meeting after Twitter hit lows in May, CEO, Dick Costolo, is reported to have devised a plan that he believed would have an impact in turning around the fortunes of the company.


Costolo reportedly instructed the company’s managers to focus their attention not only on core users. But also on people who visited the network but didn’t log in as well as those people who saw Twitter’s content embedded in other sites. The CEO believes Twitter’s future success will depend on how the three groups are addressed instead of having to focus on one set of group. One thing which can console investors would be that Twitter continues to be one of the most used social media websites.

Costolo is also urging the press to stop comparing Twitter Inc. (NYSE:TWTR) to Facebook Inc. (NASDAQ:FB) as its monthly active users currently stands at a fifth of its main rival. The strategy shift came six months after the company went public with close and former employees describing Costolo as a reactive thinker who has the tendency of shifting from one idea to the next. The sentiments essentially raise concerns on Costolo’s ability to devise a strategy and stick to it, till the end.

The tendency to bounce from one idea to the next served Twitter Inc. (NYSE:TWTR) well heading into the IPO, but the same has not worked one year into the IPO. Some people are of the opinion that the scrutiny of running a public company might have played a big role in Costolo struggling to convey a consistent vision for the company.

Twitter Inc. (NYSE:TWTR) has been below par this year even though it is trading above its $26 a share IPO price. Revenue doubled in the third quarter to a high of $361 million, but a widened loss of $175.5 million continues to be a point of concern. Investor’s pressure continues to mount on Costolo with the exit of some who held huge stakes.

Product and management changes continue to be some of the reasons why some investors have opted to stay away from the stock. Unexplained decisions or abrupt management changes are reportedly not going well with other executives and a reason behind reduced morale or defections at lower levels.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.