Twitter’s “incredible advocate” leaving
Twitter’s (TWTR) chief operating officer, Anthony Noto, will not stay with the company through the end of this year. Noto is leaving Twitter because he accepted a job as the chief executive of SoFi (Social Finance), an online lender.
Twitter CEO (chief executive officer) Jack Dorsey said in a statement sent out to confirm that Noto was leaving the social media company for the fintech startup SoFi. Dorsey noted that Noto “has been an incredible advocate for Twitter and a trusted partner to me and our leadership team.”
Twitter stock retreated on news of Noto exit
Twitter stock fell nearly 4.0% on January 23, the day Twitter confirmed that Noto had resigned. The stock recovered a bit that day, closing the day only 2.5% lower.
However, Twitter competitors’ stocks gained—perhaps as a result of investors betting that the exit of a high-profile executive at Twitter might cause disruptions at the company and subsequently benefit its rivals. Facebook (FB), Alphabet (GOOGL), Snap (SNAP), and Microsoft (MSFT) stocks all rose between 0.32% and 2.2% on January 23, when Twitter announced the resignation of Noto. Microsoft is the parent of LinkedIn.
Likely no immediate replacement
Although Noto has notified Twitter that he is on his way out, he’s not leaving immediately, though he’s expected to take up his role at SoFi on March 1.
After Noto leaves, it might take time before Twitter appoints a substantive COO (chief operating officer) to replace him. While confirming the exit of Noto, Twitter didn’t say whether it had launched research for his replacement but has instead said that the responsibilities that Noto held would be shared among other members of the company’s leadership team.