The Billion Dollar Choice That Jack Dorsey 'Needs To Make': Twitter Or Square?

After a poor performance in driving up user growth and engagement in the second-quarter, many bare asking the question if Twitter Inc TWTR needs a full-time CEO and whether Jack Dorsey is the right candidate to run the company.

Bradley Gastwirth, CEO of ABR Investment Strategy, was on CNBC recently to answer those questions.

Dorsey Needs To Choose Between The Two

"I don't think it's proper to have somebody running two publicly traded companies," Gastwirth began. "I don't think you can put 100 percent of your time and effort into running Twitter if you are really trying to run Square and grow that as well. So, I do think he (Jack Dorsey) is a good candidate to do it full-time."

"It comes down to one, does he want to do it full time and push down Square and get somebody else to run that company. But he has publicly stated many times that Square is the company that he wants to run. So, with those comments I just think it's hard to have him run both."

Gastwirth continued, "Now again, if he gave up that post at Square to do Twitter full-time, I think, that will be welcomed by the investment community and I do agree with those comments -he certainly knows Twitter quite well and probably can get engagement and monetization higher. But that's really a choice that he needs to make if he is going to do, which one that he really wants to run."

An Undervalued Acquisition Target

On Twitter being an acqusition target, Gastwirth said, "Although we don't have a positive bias and we don't own the shares, it is a company that is arguably undervalued by its user base that makes it exciting as an acquisition candidate. Now do I think it is one?...I think it makes more sense for Google...But I still think it's not going to happen anytime soon."

Twitter shares were trading down 13.41% at 12.12 P.M., when this story was written.