News that Jack Dorsey graduated from Twitter's interim CEO to full-time CEO portends well for the company's future. Twitter shares rose 7 percent to $28.16 on the announcement that Dorsey, a Twitter co-founder and former CEO, will stay with the company. Dorsey will continue as CEO of his latest startup, payment processing company Square.
Twitter shares had already accounted for the news, rising to $27.33 on Thursday following a report that Dorsey would be named permanent CEO. Although the average price consensus of analysts is $44 per share, well above Monday's closing price, there seems to be no clear consensus. Some believe Dorsey's presence alone will help stabilize the company. But there are questions about his dual-CEO duties and his inability in the past to lead the sort of structural changes Twitter may now need.
Investors have lost patience with Twitter's inability to generate profit from the popular and often influential social messaging platform. The company had revenue of $502 million in the second quarter, a 60.9 percent increase year over year, but had operating expenses of $633 million and a net loss of $137 million. The share price's 52-week high is $55.99.