Twitter Stock Drops As Parag Agarwal Takes Over: Will He Reverse It?

Twitter stock has slid 18% during the week after an Indian-origin technology officer from a famed Indian technology institute took over the reigns of the social media platform. Parag Agrawal was celebrated in India as the showcase of its educational prowess which has given the US several high profile CEOs. But he faces a tough challenge to turn around the platform which is run into several controversies and court cases in India- its third largest subscriber base. An Indian at the helm may smoothen its hot and cold relationship with the country's government.

WATCH: Parag Agarwal Takes Over Twitter, But Why The Controversy?

Twitter stock registered an 18% downturn as on the last closing bell, and saw its share price drop 2.74% on the day that it was announced that Parag Agarwal will be the new CEO of the firm, replacing Jack Dorsey who had quit the captain’s chair earlier as well in 2008. The stock had been USD $47.52 on 24 November and Agarwal’s announcement as CEO did not have any effect on its overall downward movement, although it did touch a high of USD $52.27 before settling down at USD $45.78 by day’s end.

Dorsey has praised Agarwal as a key person who “helped turn this company around”. He also said in the resignation letter posted to his Twitter handle that he will not be taking up position as a Chairman because he wants to “give Parag the space to lead”. However, it looks as though the initial impressions of Parag Agarwal as a leader are not strong enough to boost investors’ confidence to the level required to beat the downward pull of the recent apprehensions caused by the Omicron variant of the coronavirus.

Parag Agarwal’s Shake Ups At Twitter

The new CEO has made some important changes to the organization upon taking over, and it remains to be seen whether this will cause any shift in mood among investors. Chief Design Officer Dantley Davis who joined in 2019 and Head of Engineering Michael Montano  who joined in 2011 are quitting the firm, and Twitter has said it does not have “further details to share… out of respect for the individuals concerned”.

On his part, Agarwal has sent an email to the company outlining the ambitious goals that he plans to implemnent form the get-go, saying: “I believe that strategy to be bold and right”.

There was also a light-hearted moment for netizens when Tesla and SpaceX CEO Elon Musk shared a meme on Parag Agarwal ‘throwing’ predecessor Jack Dorsey out of Twitter, based on a popular meme template featuring Joseph Stalin.

 

pic.twitter.com/OL2hnKngTx

— Elon Musk (@elonmusk) December 1, 2021