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Pro Analysis

Sell Twitter as rampant executive turnover is a red flag, analyst says

Jack Dorsey, CEO of Twitter and Square.
Rebecca Cook | Reuters
Jack Dorsey, CEO of Twitter and Square.

Mizuho reiterated its underperform rating on Twitter shares, saying the recent multiple departures of senior employees may lead to lower employee morale and hurt the social network's ability to land big advertising deals.

Twitter's chief technology officer, Adam Messinger, and its vice president of product, Josh McFarland, both tweeted on Tuesday that they will leave the company.

"We view C-Level changes as red flags for any business, and two unexpected C-level changes in a short period of time could, in our opinion, create significant investment risks," analyst Neil Doshi wrote in a note to clients Tuesday. "We believe this could impact morale at the company, and could potentially jeopardize business as marketers might view the firm as a less stable platform to partner with."