Chris Sacca Says Twitter Is 'Tone Deaf' To Wall Street Queries
A major investor in Twitter Inc (NASDAQ: TWTR) said the company mishandled its recent announcement that its CEO will resign.
Chris Sacca of Lowercase Capital LLC called the June 11 announcement "a debilitating event" that was widely misunderstood by investors.
Twitter, off more than 24 percent in the past three months traded recently at $36.11, up more than 4 percent amid unconfirmed rumors that Google is interested in bidding for the company.
"Investors assumed the leadership team was in denial about reality," Sacca said, citing recent public statements from Twitter's outgoing Chief Executive Dick Costolo and its Chairman and interim CEO Jack Dorsey.
Sacca said the statements, suggesting the company won't change its strategy or product direction, were misinterpreted.
"I have no doubt we will start to see the user count and the revenue picture improve," Sacca.
Related Link: Will Google Acquire Twitter? And Is Chris Sacca Right?
Earlier this month Sacca told an interviewer that a sale of Twitter to Google Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) would be an "instant fit." But on Wednesday, Sacca said he hopes Twitter remains independent.
Wall Street has considered Twitter management "tone-deaf to their questions," according to Sacca.
"Going forward, it will be vital for the Twitter team to pause and consider how their messages land on the ears of investors," Sacca said.
"They need to be able to put themselves in the shoes of outsiders and very carefully consider how their messages will be heard."
Sacca, who said he's not interested in a Twitter board seat, offered praise for Twitter's recent unveiling of NBA Live and its Lightening live event features.
"We see the right products hitting the market," Sacca said, adding that the company's "primary challenge isn't on the product side."
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