Twitter (NYSE:TWTR) is making a move early today, up 8% to recoup a couple of days of declines.
On Yahoo, JP Mangalindan notes analysts aren’t quite as spooked as investors are by the departure of COO Anthony Noto to run SoFi. A lot of what Noto put in place will continue, says Altimeter Group’s Omar Akhtar.
On Tuesday, SoFi announced Noto was leaving Twitter (TWTR) to lead the San Francisco-based finance startup. Twitter’s stock has dipped 3.2% since the news was announced and dropped 4.72% since the news first leaked last weekend.
For now, investors appear spooked over the departure of Noto, who is credited for leading the social network’s marketing, investor relations and monetization efforts around live video streaming of events.
However, some analysts such as Omar Akhtar of Altimeter Group, said Noto’s absence from Twitter will have minimal impact on the company long-term.
“I don’t think it’s going to affect Twitter too much really, only because I think a lot of the stuff Noto put in place is going to continue, and Twitter’s got a pretty deep bench of people to make sure that those practices still continue,” Akhtar explains.
On Twitter’s product side, the company has made some significant upgrades to its service to make it more appealing to mainstream users, such as doubling the character limit of tweets to 180 from 140 characters and tweaking Twitter timelines so users who check the service less frequently can catch up with highlights of notable tweets they missed from people they follow.
Those sort of product decisions have ultimately always fallen under CEO Jack Dorsey’s purview not Noto’s, Aktar contends.
Other analysts expressed similar sentiments. Noto’s replaceable because Twitter has a “deep bench,” says Summit Redstone’s Jonathan Kees, along with management alumni who might be available like former COO Adam Bain.
And JPMorgan’s Douglas Anmuth says Noto’s exit isn’t “thesis changing.”
Shares have gained 18.4% over the past six months.
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