Shares of struggling social media company Twitter TWTR fell once again on Thursday. The stock was down another 4.2% in mid-afternoon trading as investors seem to have totally lost faith in founder and CEO Jack Dorsey.
The continued sell-off comes just two days after the stock tumbled thanks to the latest in what has become a mass exodus of Twitter’s leadership staff. Twitter’s chief technology officer, Adam Messinger, and its V.P. of product, Josh McFarland, announced Tuesday that they would be leaving the company.
Over the course of 2016, Twitter has lost more than half of its leadership team, including Messinger, McFarland, COO Adam Bain, VP of global media Katie Jacobs Stanton, SVP of engineering Alex Roetter, VP of human resources Brian Schipper, and SVP of product Kevin Weil.
The exodus certainly reflects poorly on Dorsey, who was brought back as full-time CEO of the company in October 2015. Dorsey’s return to the role of CEO was seen by many as a chance for Twitter to start over, or at least try some new things.
Since then, the company has doled out tons of cash to gain the rights to stream live entertainment like the NFL’s Thursday Night Football games, launched new curated feeds, and attempted to monetize non-registered users, but none of these efforts have resulted in the turnaround that investors expected.
The company has managed to post four consecutive earnings beats since Dorsey took over, but the growth rates are simply not there and the stock is down nearly 23% year-to-date.
For many, Twitter’s lack of success under Dorsey is no surprise. After all, the CEO is a very busy man, holding a chief executive role at mobile payments startup Square SQ as well. The recent executive departures from Twitter seem to prove that the dual-wielding jobs idea is not working out for Dorsey.
In an investor conference call made after Dorsey took over as CEO last year, the embattled leader of Twitter and Square that his ability to perform at both companies is “made possible by the great teams” he has at each job.
Can he say the same thing about Twitter now that half of his leadership staff is gone? One year is certainly a short timeframe to execute a turnaround plan, but it does seem that the concerns over Dorsey’s ability to get the job done may have been on point after all.
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