Twitter CEO Dick Costolo is losing faith in a lot of the people who invest deeply into his company. While many aren’t entirely sold on the notion that Costolo is the best thing for Twitter Inc. (NYSE:TWTR), especially now that the company is being traded publicly, and user growth has stalled, he remains at the helm, but those days might actually be numbered. One major shareholder even went as far as to say that he has lost the respect of his employees and is “grabbing” the proverbial “lifeboat” when he is moving so quickly to sell stocks. This particular shareholder has also said that he doesn’t have much faith in what the company – or board – has to say “until those guys stop selling their shares.”
However, this same investor pointed out that Costolo does have the support of the board. That means he won’t be going anywhere anytime soon. In addition, it means that the company is entering a period where its issues are going to become more exposed if they can’t readily cap off the demand for improvement in areas that they simply can’t deliver. Investors want to see more users – as social networks like Instagram continue to grow at a serious clip.
All of this will prove interesting though for Twitter, who has been under the gun now for some time – in terms of generating something new, something exciting, or something that could potentially get investors excited again in the social network. Despite the idea that an earnings report could excite some – if the broad majority of investors – especially those heavily invested are unhappy with leadership at the CEO or board level – Twitter could have some rocky times ahead of it.
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Twitter also had a serious cloud hanging over its head regarding the violence toward women, and CEO Dick Costolo conceded as much in a statement outlining the issue. He called the company’s ability to protect those who are constituently getting verbally assaulted on the social network that it’s something that Twitter will have to take more seriously heading into the future. Either way though, it’s just another strike against a company that can’t seem to do anything right – unless it increases its user base.