Days after Twitter revealed its fourth-quarter earnings that missed company's revenue estimates, CEO Jack Dorsey has bought $7 million worth of Twitter stock.
Days after Twitter revealed its fourth-quarter earnings that missed company’s revenue estimates, CEO Jack Dorsey has bought $7 million worth of Twitter stock, media reports said. According to a report in Recode on Tuesday, the documents filed with the Securities and Exchange Commission showed Dorsey made two separate purchases — he bought about $1 million in stock on Monday, and then $6 million worth of Twitter stock on Tuesday. In a tweet on Wednesday, Dorsey posted the filing with the caption “#LoveTwitter”.
According to media reports, Twitter’s revenue growth came in at just one per cent, a far cry from the 48 per cent year-over-year growth Twitter reported during the same period in 2016. In a surprise for the social media fraternity, Chinese microblogging website Weibo has for the first time overtaken Twitter with its market capitalisation hitting $11.3 billion, surpassing Twitter’s $11.1 billion market cap which is a difference of about $200 million.
This is the first time Weibo’s market capitalisation has risen past Twitter on a close-of-day basis. Dorsey had last time bought a small share in August 2015 — shortly after he became Twitter’s interim CEO. “The new shares represent about three per cent of Dorsey’s overall Twitter holding. Twitter stock was up five per cent on the day and another one per cent in after-hours trading,” the report noted.