NEW YORK (TheStreet) -- Shares of Twitter Inc (TWTR) were higher by 7.45% to $38.50 in after-hours trading Thursday, following the company's announcement that its CEO Dick Costolo is stepping down, Reuters reports.
Costolo will step down from the position on July 1, while co-founder Jack Dorsey will act as interim CEO to take his place.
According to a regulatory filing, Costolo will continue to serve on the company board, Reuters noted.
In a Twitter post, Costolo welcomed Dorsey back.
San Francisco-based Twitter is a global platform for public self-expression and conversation in real time, where any user can create a tweet and any user can follow other users.
The company generates its advertising revenue primarily from the sale of its three promoted products which include promoted tweets, promoted accounts and promoted trends.
Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time."