Jack Dorsey might not be a CEO who is deemed a high-profile celebrity, but he is someone who is making a lot of news. Dorsey’s name is turning up in tech circles due to paying a massive $9.5 million to purchase additional stock in Twitter. Dorsey is the CEO of Twitter so the purchase is definitely eyebrow raising.
Earlier in the year, Dorsey had purchased $7 million in Twitter stock. His most recent purchase did help the price of the stock increase, but this is not necessarily an increase capable of being sustained.
Dorsey’s purchase is intriguing considering Twitter has not received a lot of positive press in recent years. Twitter is still a popular social media platform designed to assist communications, but significant financial success has been elusive. Twitter is well-known. Just as many people surely know the name Twitter as they know the name Facebook. Twitter, however, is not generating the same levels of revenue as Facebook is. Likely, this is because the scope of how Twitter can be used is far more limited than Facebook.
Twitter is not a business that deserves to be written off. Other companies have done worse and turned their fortunes around. Some good news does seem to exist.
The first quarter of 2017 revealed $548 million in revenue, an amount that was more than expected. Previous quarterly revenue reports were rather low. The less-than-preferable low revenues posted in prior quarters is what caused so much negative speculation about the fiscal stability and long-term health of the company.
One good quarter, however, is not something to become overjoyed with. One solid quarter is exactly that: one good quarter. Whether or not Twitter is capable of continually delivering good earnings reports is something that only the future shall reveal. Clearly, the CEO of the company has strong faith in potential success. He would not be infusing huge sums of money if this was not the case.
Other business executives have speculated wrong in the past as history reveals. Dorsey may be making an ill-advised investment putting funds into Twitter. Or, he could be setting himself up someone capable of earning incredible sums from the investment.
Twitter is definitely not a company on the proverbial rocks. The social media platform will be around for a long time, but how successful will it reasonably be?