Twitter needs a much clearer strategic plan that needs to be communicated to the investing public. There¹s a reason why the stock has fallen below the closing day IPO price. Investors have lost confidence and that confidence needs to be rebuilt. Just a few of the questions that need answers include:
- What's the strategy to engage users?
- How will Twitter compete against Instagram? Against Facebook? Against Snapchat?
- How will Twitter increase advertising revenue without alienating users?
- What is the specific plan to increase usability?
- How will Twitter deal with cyber bullying?
- How can Twitter become more of a timeline of events rather than one-off bursts of commentary?
- How will the company measure its success beyond Monthly Active Users?
These and many other questions need to be thoughtfully addressed by management. Ambiguity won't do; investors are demanding clarity and an operational vision that resonates. Investors are waiting and are quickly losing patience.
Read MoreHere's Twitter's biggest problem
Twitter's user base is the envy of the Internet and they have the opportunity to leverage huge reach into huge revenues. Twitter has a great problem — hundreds of millions of users waiting for the company to give them another reason to be more active in using the product. The change of management is a first step towards resetting the company's path and restoring investor confidence.
Commentary by Michael A. Yoshikami, the CEO and founder of Destination Wealth Management in Walnut Creek, California. He is also a CNBC contributor.
Disclosure: Michael Yoshikami does not own shares of Twitter and has no other business relationship with the company. But Destination Wealth Management may buy Twitter for clients.