Wall Street Wants Twitter CEO Costolo Gone | NBC 7 San Diego
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Wall Street Wants Twitter CEO Costolo Gone

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    Twitter CEO Dick Costolo speaks during the 2011 Web 2.0 Summit in San Francisco.

    Wall Street seems to want Twitter's chief executive Dick Costolo to leave, because once a well-known analyst suggested that Costolo might leave the company, Twitter's share prices leaped at the news.

    “We think there’s a good chance he’s not there within a year,” Robert Peck of SunTrust told CNBC Monday about Costolo.

    Right after the news, Twitter's stock price clearly spiked around 10 a.m. Pacific time just after Peck appeared on television, according to USA Today. Twitter shares prices rose 3.6 percent to $38.43 by the end of the day.

    Costolo has faced criticism as the head of the micro-blogging service, mainly because investors unhappy with the tech company's performance. So far shares are down 39 percent from its initial public offering of $44.90 a share in November 2013, and average monthly users seems be stagnant at 284 million users. Instagram, a messaging and photo-sharing social network, recently hit 300 million users and is growing at a much faster rate.

    Costolo has been called to task over "wishy-washy leadership tactics" and other missteps. In short, investors would love to see him ousted from the masthead and are expecting it. Peck said he was asked about Costolo leaving almost every time he meets with institutional investors.
    Perhaps it is happening. Forbes reported that Costolo and his trusts have sold off about a third of their holdings in Twitter, or about $60 million.