Date
23 July 2017
Twitter shares are up 9 percent after heavy insider buying led by co-founder Jack Dorsey. Photo: Telegraph
Twitter shares are up 9 percent after heavy insider buying led by co-founder Jack Dorsey. Photo: Telegraph

Twitter co-founder jumps in to shore up stock

Twitter Inc. co-founder Jack Dorsey pumped cash into the stock in a show of confidence after it hit a record low last week.

“Investing in @twitter’s future,” Dorsey tweeted on Monday.

Dorsey said he had bought 31,627 shares, worth about US$875,000 at US$27.67 per share, just weeks into his new role as interim chief executive of the beleaguered microblogging site.

Other insiders also plunged in to bolster the stock price, according to Reuters.

Director Peter Currie bought 9,200 shares worth about US$249,000 at US$27.03.

And chief financial officer Anthony Noto and another director, Peter Fenton, disclosed share purchases last week.

Dorsey, who now owns about 21.9 million shares, or about 3 percent of Twitter, has been candid about its troubles.

User growth in the second quarter rose at the slowest pace since the company went public in 2013.

Twitter’s shares closed up 9 percent at US$29.50 on Monday after slipping to a record low of US$27.82 on Aug. 7, just shy of the IPO price of US$26.

Trading in Twitter’s options contracts was busier than usual, with much of the action biased toward call, usually used for bullish bets on the shares.

Meanwhile, Twitter clinched a multi-year partnership with the National Football League to deliver video and other content to NFL fans on a daily basis.

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