The mornings are looking bright for the blue bird. The stock price for Twitter Inc. (NYSE:TWTR) was up 2 percent when the market opened Friday. The boost came after CEO Dick Costolo announced he would be stepping down on July 1.
The stock is rising, signaling that Wall Street is pleased with the company's transition. Indeed, investors have been pushing for Twitter to improve, and replacing the microblogging site’s leader is sure to shake things up. The investors’ demands come even as the company beat profit estimates for the first quarter of 2015. The social network has failed to meet goals, however, for increasing active user growth and advertising revenue.
Former CEO Jack Dorsey will serve in the interim as Twitter organizes a search committee to find a replacement. "This transition is not the result of anything more than Dick deciding to move on from his role as CEO. We have a strong business with solid fundamentals, and our strategy, objectives and priorities have never been more aligned," Dorsey said on a call about the transition Thursday.
It is unknown who will be his permanent replacement, but there are several prominent contenders, including Dorsey and other internal candidates such as Adam Bain and Anthony Noto.
Co-founder Evan Williams had also been considered, but not only is he on Twitter’s CEO search committee, he is also selling off $12 million in shares, according to Twitter’s SEC filings.
In after-hours trading Thursday, shares of Twitter rose to as high as $39.29, up to 8 percent. The price closed at $35.83 during regular trading hours.
Costolo and Dorsey will appear on CNBC at 10 a.m. EDT Friday to discuss the transition at the company.