NEW YORK (TheStreet) -- Shares of Twitter Inc (TWTR) were rallying, up 3.01% to $36.93 in early market trading Friday, adding to its gains from late Thursday after the company announced its CEO Dick Costolo is stepping down.
Costolo will step down from the position effective July 1, while co-founder Jack Dorsey will act as interim CEO to take his place.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio and Director of Research Jack Mohr wrote in a recent post on Action Alerts Plus, "We are pleased with this move, and have been calling for Costolo to step down (quite prominently) for quite a long time now, as we believe the company lacks a clear and consistent vision and strategy."
"While we do not believe the company can be fixed overnight, the only way it can begin the turnaround process is by making a change at the very top. Dorsey is a proven leader, visionary and creator," Cramer and Mohr added.
Analysts at Jefferies issued a note this morning saying Twitter's next CEO should focus on user growth and product improvements, and not on monetization.
The firm noted that investors are worried about Twitter's inability to increase its logged in user base.
Jefferies analysts maintained a "buy" rating with a $60 price target.
In a Twitter post yesterday, Costolo welcomed Dorsey back.