Twitter shareholders have been on a roller coaster ride, with the latest upswing coming on news of its chief operating officer's departure.
Ali Rowghani resigned over a "fundamental disagreement" with CEO Dick Costolo over what the COO role entailed, CNBC .
shares were up more than 4 percent in midday trading Thursday.
Leading up to the news, the microblogging site hadn't been making as much money as investors had expected and the possible sources of the company's long-term revenue growth have been unclear, according to Michael Gorman, Engadget editor in chief.
"I think it sounds like probably the folks on Wall Street are with the higher-ups at Twitter management right now and they believe that kind of removing some responsibilities away from the COO and eliminating that position is going to be the right move," Gorman said.
"I think Twitter was not happy with the performance. I mean Ali was brought on to ... increase the user base and I think innovate, get products that are going to get more people using the service, which of course allows them to monetize, and that just hasn't happened at the rate that they were looking for," Gorman said.
Twitter doesn't intend to hire a new chief operating officer, CNBC reported. Instead, Rowghani's responsibilities will be taken up by other members of Twitter's management team.
—By CNBC's Althea Chang.