The tech world is getting rocked with some huge news. Jack Dorsey, CEO and co-founder of Twitter (NYSE:TWTR), is stepping down from his position at the company. But fear not, crypto bulls, for Dorsey is maintaining control of his second venture, Square (NYSE:SQ). The global payments company has been building momentum for a long while now. But, with Dorsey now finished with Twitter, Square stock is fit to best benefit from the news.
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Jack Dorsey tweeted his email to Twitter employees late this morning, detailing his reasoning for stepping down as the chief executive. Most notably, Dorsey points to Twitter being “founder-led” as a point of failure in his eyes. He says he wants to “ensure this company can break away from its founding and founders.” In doing so, former CTO Parag Agrawal will step in as the new CEO, effective immediately.
Dorsey’s status as CEO of both Twitter and Square, has drawn the ire of many on Wall Street — none more so than Paul Singer. Singer, billionaire and Elliott Management founder, has been taking aim at Dorsey’s Twitter CEO status for a long time now. He cites this split time as reason enough for Dorsey’s inability to effectively lead the Twitter team. Singer’s Elliott Management is one of the largest stakeholders in TWTR.
Square Stock Becomes New Point of Interest
It’s not yet clear how Singer feels about Twitter’s CEO shake-up. However, holders of Square stock have reason for nothing but smiles thanks to news of Dorsey’s resignation. That’s because now, the company will be receiving the full attention of its founder and CEO.
Square is a financial services company focusing on global payments. Most know the company best from its flagship product, the quick-payments application Cash App. Through Square, Dorsey and company are trying to revolutionize the way consumers pay for products and services, or exchange money among peers.
The company is also a vessel through which Dorsey is exploring his increasing interest in cryptocurrency. The booming crypto market has brought Dorsey front and center as a spokesman for the technology. He has made appearances all over the blockchain and DeFi spaces, like through his appearance at the “B Word” conference. Earlier in the summer, Dorsey announced that Square is building a web of DeFi products for Bitcoin (CCC:BTC-USD) holders. The company is also preparing to roll out a crypto hardware wallet.
There’s a lot on Jack Dorsey’s plate, even as he shoves Twitter to the side. Square stock holders should be celebrating this news as a pivotal moment for Square as a company. With increasing attention sure to come from Dorsey, one can expect development of Square’s product suite to speed up significantly.
As the news continues to ripple across the investing community, Square stock isn’t immediately soaring. Shares of SQ are up just 0.5%, and trading volume is on track to meet daily averages.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.