Jack Dorsey logging out as Twitter CEO is a good thing for investors, contends veteran internet analyst Brent Thill at Jefferies.
"I think everyone is excited for the change," Thill said on Yahoo Finance Live. "The company has not achieved its full vision."
Thill rates Twitter's stock a Hold.
Dorsey said Monday he is stepping down as CEO. He will be replaced by CTO Parag Agrawal, who has been with Twitter for more than a decade.
"I've decided to leave Twitter because I believe the company is ready to move on from its founders," said Dorsey in an email he tweeted to his 5.9 million followers. "My trust in Parag as Twitter's CEO is deep. His work over the past 10 years has been transformational. I'm deeply grateful for his skill, heart, and soul. It's his time to lead.
The news comes as Dorsey has fended off numerous attacks on his leadership in recent years.
In March 2020, Twitter settled with noted activist investor Elliott Management who demanded numerous changes to boost a then flagging stock price. Dorsey also caught intense heat for how he handled the Trump presidency, which climaxed with a storm on Capitol Hill that many allege began on Twitter.
The company was also dealt with product setbacks and internal departures reportedly caused by Dorsey's lack of action.
But in the end, it may be Twitter's underperforming stock price versus its peers that finally drove the change.
Twitter's stock is up 166% over the past five years, compared to a 185% gain for Meta, according to Yahoo Finance Plus data. Snap shares are up 127% during that same timeline. Shares of Twitter have also trailed the Nasdaq Composite by 30 percentage points the last five years.
Meanwhile, Twitter's stock has trailed both of its rivals the past year, rising a meager 3% versus a 21% gain for Meta and 7% increase for Snap.
"This [turnaround] is going to take multiple courses, if not years to play out," added Thill.
Yahoo Finance tech editor Dan Howley contributed to this story.