Twitter's (TWTR +2.6%) decision to remove COO Ali Rowghani's position "makes sense" given a slower-than-expected pace to product innovation, writes SunTrust's Robert Peck. Like others, Peck isn't surprised by Twitter's move, given recent personnel changes.
The WSJ reports Rowghani's resignation came after CEO Dick Costolo "decided he wanted to take over the product team and streamline the reporting structure so that he oversaw both product and engineering," amid rising pressure over slowing growth. Rowghani's insistence on holding onto the product group "ultimately led to his departure."
Shares have cracked $36 for the first time since Twitter's May 6 lockup expiration.