Jack Dorsey, Twitter Inc (NYSE:TWTR) CEO has increased his state in the social media giant after purchasing additional shares amounting to about $7 million. This is according to filings posted on Tuesday. In a tweet about the stake on Tuesday, Dorsey broke the news with the hashtag “Love Twitter” the billionaire bought around 426,000 of the company’s shares that form one of the best Nasdaq Stocks in the US stock market. The share prices ranged between $15.84 and $16.60 cumulatively adding to about $7 million.
Additionally, Dorsey sold off over $11 million worth of shares in Square Inc (NYSE:SQ), another Nasdaq Stocks company where Dorsey has been serving as the Chief Executive Officer since 2017. Although Dorsey’s double-time running of both Square and Twitter has raised eyebrows, the billionaire maintains that he is staying the course. This is despite Twitter’s stalled growth and low performance compared to its peers. Earlier this week, in a conference concerning Twitter’s earning results for the fourth quarter, Dorsey said he would remain as dual-CEO despite the challenges facing the social media company.
The comments come at a moment when the company is recording nearly zero growth and investors continue to worry about the company’s future.
Twitter recorded over 9.5% drop in its shares over the past week following the company’s announcement of its earnings guidance that fell far below what was expected. Despite the poor performance, Dorsey stressed his support for Twitter. The company’s stock has maintained a windfall down shift since Dorsey assumed position of CEO in 2015.
With falling stock, the company and Dorsey are likely to attract activist investors that may see an opportunity to jump in and reignite the company’s upper levels so as to explore different means to generate money and return the company to profitability. Activist agitation is a common case with financially troubled companies. Investors like Carl Icahn forced Apple Inc. (NASDAQ:AAPL) to increase the value it was returning to investors.
In an effort to spring back to profitability, Twitter has been laying off a number of its employees so as to cut on operating costs and streamline its business.