Twitter Slumps on Rumors of COO Departure

It’s a case of “sell the rumour”.

Shares of Twitter (NYSE: TWTR) slipped in pre-market trading Monday after reports over the weekend that Twitter's COO Anthony Noto is in discussions to leave for another company.

Noto is among those being considered to be the next CEO of SoFi, a startup building a digital lending business, media reports seemed to confirm

A source familiar with the situation said the offer was extended to Noto but the terms of the agreement have yet to be solidified. A decision is likely in the next few days. The Wall Street Journal first reported the news.

Noto was formerly a banker at Goldman Sachs (NYSE: GS). He has long chased the dream of becoming a chief executive, according to Recode.
Twitter declined media requests for comment, saying the company's policy is not to comment on rumors and speculation.

The social media company was in the news late last week with tidings that it would personally inform users who have come into contact with tweets linked to Russian corruption of the 2016 U.S. presidential campaign.

The news comes amid strong criticism from Congress that the social media giant, along with Facebook (NASDAQ: FB) and Google’s Youtube (NASDAQ: GOOGL), are not doing enough to combat terrorism on their platforms.

Lawyers from Twitter, Facebook, and Youtube were grilled in a Commerce, Science, and Transportation Committee hearing Friday to discuss what methods can be taken to secure their platforms and users against terrorist content, notably Russian propaganda.

Twitter's stock has risen nearly 43% over the last year. That price dropped 30 cents, or 1.3%, to $23.36 mid-morning Monday.