Twitter Inc (NYSE:TWTR) has been seeing bad times, and this has directly impacted its stock. Now two executives, CFO Anthony Noto and Executive Chairman Omid Kordestani, have come forward to support the stock by buying more shares, reveal filings with the SEC.
Much-needed morale boost for Twitter
Noto bought stock worth $250,000, while Kordestani bought 122,250 shares worth around $2 million. Kordestani, a longtime Googler, was named Chairman of Twitter’s board in October. The micro-blogging firm actually needs a morale boost of this kind. The company’s stock is already down 22% this year, and in 2015, it plummeted 62%.
In the past as well, Twitter executives have bought shares to boost Wall Street’s confidence in the company. In August 2015, when Dorsey was serving as Twitter’s interim CEO, he made a small financial showing of support then.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
Twitter did not comment about the purchases, nor did the two buyers tweet anything about it. However, it is clear that they want to give a message to the company’s employees that things will surely turn around.
Concerned investors and Wall Street
Investors are concerned about whether or not the company will ever succeed in attracting a wider audience beyond the loyal core user base it has. These concerns deepened even further after the company announced that in the fourth quarter, it did not add a single new user.
Twitter went public in 2013, and since then, it has gone through several ups and downs, such as the hiring of a new CEO, laying off employees and losing several top crucial executives. Though the company has introduced new features and has been at the center of many a news cycle, it has not been able to shake off much of the doom and gloom around it until now.
For the past year, Wall Street has been putting pressure on the micro-blogging firm. Also it does not have faith that the company will ever be able to grow its user base. Twitter’s stock closed at yet another all-time low last week after the company reported its fourth quarter earnings. However, things have rebounded marginally since then. From last week’s close of $14.31, the stock has climbed by more than 20% since then.
On Thursday, Twitter shares closed up 5.61% at $18.44.