Twitter tried to rally on news their CEO was stepping aside to clear the way for the next chapter in its young life.
Unfortunately they didn’t handle the announcement well. Sometimes, the folks out in Silicon Valley don’t quite understand how things work on all the way on the other coast.
What the market place heard was, all is fine, Mr. Costello stepping down was his decision and our strategy remains the same. They’ll get another chance when the NEW CEO comes in, but right now the script should have read like this.
“We hear the market. We are working on ways to increase monthly users and wait until you see what we have in store for the advertising platform.” The board always has contingency plans in place, and has already begun an executive search with several candidates in the hopper.”
Neither statement means anything, but the second one is what investors want to hear. They will be forced to learn the hard way, as Wall Street always get’s its way.