Parag Agrawal, the CEO of Twitter, Inc. (NYSE: TWTR), said in a memo to employees that two senior leaders will depart and the company has stopped most hiring, according to a report published by Reuters.
Consumer division head Kayvon Beykpour and Bruce Falck, head of revenue, have been asked to leave. Beykpour’s tweet read, “Parag asked me to leave after letting me know that he wants to take the team in a different direction.”
Agrawal also said the social media company would review all existing job offers to check if any “should be pulled back.”
The decision comes after the company withdrew its 2023 daily users and revenue target of $315 million and $7.5 billion, respectively.
Additionally, Agrawal said Twitter plans to bring down its spending on travel and marketing, contractors, and real estate.
SEC Investigates Musk’s Stake
Meanwhile, a report published by The Wall Street Journal said the U.S. Securities and Exchange Commission (SEC) has opened an investigation into the delay by Elon Musk in disclosing his substantial stake in Twitter.
The regulator requires investors to file a public form when their stake in a company crosses 5%.
The report said that Musk filed the form on April 4 while his stake in the social media company crossed 5% on March 14. The delayed filing allowed the Tesla (NASDAQ: TSLA) CEO to acquire additional shares of Twitter at a lower price.
Daniel Taylor, an accounting professor at the University of Pennsylvania, said, “Musk saved over $143 million by not declaring that his stake increased above the 5% level as the share price could have surged higher if the market was informed about his growing stake.”
Based on one Buy and 26 Holds, the stock has a Hold consensus rating. TWTR’s average price target of $52 implies 15.4% upside potential from current levels. Shares have lost 10% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Twitter’s performance.
According to the tool, Twitter’s website traffic registered a 24.1% fall in global visits in April, compared to March. However, the footfall on the company’s website has grown almost 90% year-to-date against the same period last year.
TWTR stock lost 2.2% on Thursday after the release of the two pieces of news. However, it regained over 1% in the extended trading session to end the day at $45.55. The stock has been volatile since Musk revealed in April that he has acquired a 9.2% stake in the company. Twitter’s investors continue to be on the edge as they wait for a final deal.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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