Jack Dorsey got a double dose of investor anger this earnings season
And Jack Dorsey, the 39-year-old CEO of Twitter and Square, got a painful reminder of just how tough the jobs can be with a double-dose of investor ire in the past week.
Square reported widening losses in the first quarter on Thursday, which caused investors to sell off the company's stock as much as much as 15% in after hours trading (the stock regained some ground and was down roughly 12% at the time of writing).
For a newly public company like Square, which had its IPO in November, the poor showing is a setback as it tries to establish a track record with Wall Street. Square's stock is still trading 26% above its $9 IPO price, but Thursday's sell-off trimmed its market cap down to about $3.9 billion, shaving about $500 million from its value.
Here's what Square's chart looked like after reporting Q1 earnings on Thursday:
But that's nothing compared to the losses that Dorsey's other company has suffered. Twitter's stock also got crushed last week after the social networking company reported lighter-than-expected Q1 revenue. And the stock hasn't stopped falling since, reaching an all-time low of $13.90 earlier this week.
In the weeks since Twitter has reported its Q1 earnings, roughly $2 billion in market value have been vaporized, with Twitter's market cap now less than $10 billion.
Here's Twitter's story since its quarterly report last week:
For Dorsey, the declining stock prices also have a personal impact. Dorsey owns 3.4% of Twitter's stock and owns roughy 23% of Square shares (though he has committed to giving back about half of those shares to the company and to causes he believes in).