Seeking Alpha

Twitter product development VP leaving

  • Michael Sippey, Twitter's (TWTR +2.7%) VP of Product, is resigning. He'll remain in an advisory role for the time being.
  • In a blog post, Sippey says he decided "it's time to move on" after talking with CEO Dick Costolo and COO Ali Rowghani in recent weeks. He hints he'd prefer to work in a startup-type environment once again.
  • Sippey's move could be a sign of things to come: Facebook saw many senior execs depart in the months following its May 2012 IPO. A number of those execs would later turn up at startups.
  • Shares bucked a tech selloff today with the help of Stifel's coverage launch.
  • Yesterday: Twitter reportedly partnering with Stripe for credit card payments
Comments (4)
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    I think he knows that Twitter will not hold for long and he doesn't want to be around when he has to unload his shares completely, so it's best for him to get lost while the going is good. He would have all the capital he needs for any new start-up from the bonanza that he's going to get from unloading his shares. I think everyone will be tripping over each other to off-load their shares but I may be wrong, since it depends largely on what the insiders know about TWTR.
    17 Jan, 05:44 PM Reply Like
  • digiTrader
    , contributor
    Comments (46) | Send Message
     
    That doesn't sound as if he left voluntarily. Investors and the stock market do have high expectations. Twitter badly needs a convincing strategy for generating profits in order to justify its valuation.
    I guess there is a certain level of cluelessness of how to grow the company
    into the multi billion realm.
    That's a tough challenge and it might not be feasible at all.

     

    From Sippeys blog post:

     

    "Over the past few weeks I’ve talked with Dick and Ali about what I want next in my career, and what Twitter needs at this stage of its life".
    20 Jan, 02:50 AM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    digi......you're right about Twitter's leadership being clueless because they didn't expect the huge response that they got. They put out a plan, got it evaluated by the banks and other financial analysts, fixed a price that allowed for it to drop (like FB did) before it settles high enough for them to take home a huge pay-check, but I don't think they expected the breakout performance (nobody did), so now, their original plan may not work effectively to fulfill and justify the strong expectations of its supporters. If such expectations aren't satisfied, then they will lose all faith and trust in their abilities to generate the revenue expected of them because at the end of the day, it's not so much about making profits (because profits can be tweaked) but it's about generating revenue. They can't achieve the expected high volume of revenue all of a sudden. Over time, maybe. Whatever they may try to do, there'll be increasing obstacles and competitors abound. Hence, I believe many of the original team who had put this IPO plan together are having second-thoughts, so being hotshots and brilliant minds, I'm sure some would decide on claiming their pay-checks before it evaporates, should the price crash, so the only way to minimize the impact on the price when they do is to quit now. Then, it may not be seen as insiders cashing in their chips but profit-taking by outsiders. I GUESS that the insiders would be comfortable dealing with the price dropping to $40 when they cash in their chips because I'm guessing that they are now figuring how to structure a claim-check strategy that would not rock the momentum too much and scare away the tremendous support that they did not expect to have. Who knows, they may not decide to cash in their chips until the second release in May, but I'm pretty sure that they can't really control the first release, so some with weak nerves would probably decide to git while the going is good. Hee-haw!!
    20 Jan, 08:34 AM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    I bought a June Put on Twitter. I don't believe it deserves a price over $35 until it starts making money.
    20 Jan, 12:33 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|