Tagged: Dick Costolo

Twitter’s failure: a failure of management or expectation?

It has just been announced (in a Tweet of course) that Twitter CEO Dick Costolo has stepped down, under pressure from investors, because of a perceived failure to either grow the user base or revenue sufficiently.

The real issue here is what is this a failure of.  Is it a failure of management to grow users and (advertising) revenues, or it is it a failure of expectation on the part of investors?  I tend to see it as the later.

Twitter has the same problem that Facebook has in that the ‘clever’ chaps on Wall Street who had to stick a number on it when it started to prospect for investment used the wrong model.  Continue reading