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Twitter board won't decide on new CEO until after Labor Day: Re/code

Who will be the next Twitter CEO?
CNBC
Who will be the next Twitter CEO?

Twitter's board likely won't decide on a new CEO until after Labor Day, Re/code's Kara Swisher said Friday on CNBC's "Squawk Alley."

Investors on Friday watched Twitter's shares, which were down more than 1.2 percent midday amid speculation the social media company would name a new permanent CEO. But Swisher said the board of directors did not select a candidate at meetings Thursday.

"I'm not sure what the pressure is," she said. "This is an important decision, they should take time to pick the right CEO, unless they are going to sell [the company]."

Co-founder and Chairman Jack Dorsey has manned the helm at Twitter since former CEO Dick Costolo stepped down in June. Swisher said unless the company can sign on a big star, Dorsey is the candidate to beat for the top job at Twitter.

"They have a very good candidate in Jack Dorsey," Swisher said. "Obviously, Jack Dorsey has had his on-the-job training, and they are trying to assess how he's done."

Read More After CEO exit, Twitter says no strategy change

June's leadership shuffle came as the company experienced sluggish results. The social media company topped revenue and earnings estimates in the latest quarterly report, but disappointed the Street on the key metric of monthly active users. At that time, Dorsey said the company was "not satisfied" with its audience growth.

As a company veteran, Dorsey might have the clout to make tough decisions as Twitter rebounds, Colin Sebastian, R.W. Baird senior Internet analyst, said Friday on "Squawk Alley."

"We think that's a potential positive catalyst. Certainly he has the engineering background," Sebastian said. "There would be a clear precedent for a founder to stay on as CEO."

Paul Holland, partner at Foundation Capital, also said Dorsey's permanent return could be positive for the company.

"He will come back in and provide a lot more clarity about the future of the business, the monetization strategy and how does the company enter the pantheon of the really, really strong companies in the social domain?" Holland said Friday on "Squawk Alley."

Swisher said Twitter may need a big name on par with the likes of Google's recently named CEO Sundar Pichai, or Twitter advertising guru Adam Bain, if Dorsey wasn't given the job.

With the uncertainty surrounding Twitter's next move, one analyst said the company's execution of product rollouts in the rest of 2015 will be a test for investors.

"There's been a lot of skepticism from investors—in this case, the sentiment is extremely negative," Robert Peck, Internet analyst at Suntrust, said Friday on CNBC's "Squawk on the Street." "We actually like that. We think with product emphasis ... they can target that mass market they've missed so far. We think it's one of the best news broadcast platforms out there."

Read MoreTwitter stock sinks as execs warn on user growth

Clarification; An earlier version of this story mischaracterized the status of potential candidates for the Twitter CEO job.

Disclosure: CNBC's parent NBC Universal is an investor in Re/code's parent Revere Digital, and the companies have a content-sharing arrangement.