Twitter’s stock broke its losing streak today. Investments in Twitter from the company’s board and executive team saw its stock close up nine percent.
On Friday, interim CEO Jack Dorsey bought $875,000 worth of Twitter stock, which he announced in a tweet.
— Jack (@jack) August 10, 2015
In addition to Dorsey, chief financial officer Anthony Noto and board member Peter Currie also purchased blocks of stock worth roughly $248,400 and $200,000 respectively. All three stock purchases were meant to show that Twitter’s leadership continues to have faith in the company. Investors looked on the move favorably, pushing the stock upward.
Before today, Twitter stock had been on a downward spiral since the company’s Q1 earnings statement leaked. Twitter’s Q1 revenue came in well below expectations, sending the stock down further. Over the course of Q2, Twitter CEO Dick Costolo stepped down and Jack Dorsey stepped in as interim CEO, resulting in an eight percent rise in Twitter’s stock price. But the spike was short-lived, and Twitter’s stock price continued trending down. Even a media frenzy around Twitter’s future plans didn’t move the needle.
During its last earnings statement, Twitter’s revenues rebounded, but the company failed to meaningfully grow its user base. Investors worry that Twitter may not be able to attract new users, and the company hasn’t been able to allay those fears. Meanwhile, Twitter also lost head of product management Todd Jackson and head of growth Christian Oestlien. Ever in flux, Twitter’s stock sank in the days that followed.
— Chris Sacca (@sacca) August 7, 2015
On Friday, outspoken investor Chris Sacca tweeted that Twitter should appoint Dorsey full-time CEO of Twitter and make current head of revenue Adam Bain the COO. That same day, stock closed at an all-time low of $27.04.
The stock’s reversal shows that traders are willing to hold off on devaluing the company further, knowing that Twitter executives are putting some skin in the game (albeit very little). Now the pressure is on for Twitter to formally select a new CEO.