Please ensure Javascript is enabled for purposes of website accessibility

Twitter's Stock Surges as Activist Investor Circles

By Donna Fuscaldo - Updated Mar 2, 2020 at 6:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Elliott Management, an activist investor group, has amassed a stake in Twitter and could call for the ouster of CEO Jack Dorsey.

Twitter (TWTR -0.44%) shares are surging Monday on news change could be coming to the microblogging platform operator. 

Citing people familiar with the matter, Bloomberg reports that  Elliott Management, the activist investing firm, has amassed a "sizable" stake in Twitter and is gearing up to call for change --  including the potential ouster of Chief Executive Jack Dorsey.

Dorsey, who also runs digital payments company Square, has been facing criticism for weeks over his plans to spend half the year in Africa. Investors including Jeffrey Sonnenfeld from the Yale School of Management were less than impressed when Dorsey made the announcement. Sonnenfeld called it "reckless and egomaniacal" and said Twitter's board was "irresponsible and negligent." 

Person tweeting on mobile phone.

Image source: Getty Images.

Sonnenfeld isn't the only one who is upset. Elliott Management reportedly nominated four directors to Twitter's board, even though there are only three seats that will be available. Bloomberg notes that Elliott Management and executives at Twitter have had discussions, the latest Friday night, but Dorsey was notably absent. Those present included Chairman Omid Kordestani and its lead director Patrick Pichette. 

The potential shakeup at Twitter comes as the company is expected to benefit from the upcoming U.S. presidential election and the Summer Olympics. Those two events should drive usage and advertising sales growth. Twitter has decided to shun any political ads on its platform but it is still among the most engaged political audiences in social media. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Twitter, Inc. Stock Quote
Twitter, Inc.
TWTR
$38.21 (-0.44%) $0.17
Block, Inc. Stock Quote
Block, Inc.
SQ
$64.97 (-2.64%) $-1.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
322%
 
S&P 500 Returns
113%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.