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Peck: Is Twitter Looking For A 'Unicorn CEO'?

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Peck: Is Twitter Looking For A 'Unicorn CEO'?
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In a report published Tuesday, SunTrust Robinson Humphrey analyst Robert S. Peck mentioned that the search for a "unicorn CEO" by Twitter Inc (NYSE: TWTR) was being viewed negatively by investors.

Twitter's shares, rated Neutral by SunTrust Robinson Humphrey, declined by about 7 percent on Monday on very strong volume. Some of the reasons responsible for the decline were noted as "the continued loss of product execs," a user analysis on Business Insider, general capitulation and an investor view that Twitter was searching for a "unicorn CEO" which may take too long to stop the negative trends, Peck mentioned.

In the report SunTrust Robinson Humphrey noted, "Twitter is believed to be looking for candidates who have a deep knowledge of the product, an active user of the service, a product expert, innovative, a proven leader, with business/monetization strengths and able to dedicate 100 percent of their time, available and willing to engage in a turnaround and an inspiration for employees and investors."

Peck believes that since most of the available candidates were unlikely to meet the full checklist of traits desired by Twitter, the most likely conclusion would be "a triumvirate of power, with Jack Dorsey becoming permanent CEO (while continuing as CEO of Square), Mr Bain becoming President or COO (assuming business responsibilities), and Mr Williams taking more leadership on the board (perhaps chairman)."

While a thorough search was paramount, speed was critical in the search of board and other potential candidates. "Without a permanent CEO in place with a clear vision and strategy, we continue to worry about a sustained "brain drain" of talent (as seen so far) as well as a middle management obstruction of decisions," the report added.

Latest Ratings for TWTR

DateFirmActionFromTo
Nov 2016OTR GlobalDowngradesMixedNegative
Oct 2016OppenheimerUpgradesUnderperformPerform
Oct 2016Goldman SachsMaintainsBuy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: SunTrust Robinson HumphreyAnalyst Color Reiteration Management Analyst Ratings Tech Best of Benzinga

 

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