Twitter Interim CEO Dorsey Buys More Shares in Show of Faith

Twitter Inc interim Chief Executive Jack Dorsey joined other insiders in buying more shares in the company in a show of confidence in the stock, which traded at a record-low last week.

Dorsey, who stepped in as interim CEO on July 1, has been candid about the problems faced by the microblogging website .

User growth in the second quarter increased at the slowest pace since the company went public in 2013.

“Investing in @twitter’s future,” Dorsey tweeted on Monday, after disclosing he had bought 31,627 shares, worth about $875,000 at $27.67 per share.

Dorsey now owns about 21.9 million shares, or about 3 percent of Twitter.

Twitter’s shares closed up 9 percent at $29.50 on Monday. The stock fell to a record low of $27.82 on Aug. 7 – just shy of the IPO price of $26.

Separately, director Peter Currie disclosed he had bought and 9,200 shares worth about $249,000 at $27.03.

CFO Anthony Noto and another director, Peter Fenton, disclosed share purchases in the company last week.

Trading in Twitter’s options contracts was busier than usual on Monday, with much of the trading biased towards calls, usually used for bullish bets on the shares.

Trading in calls outnumbered puts by a ratio of 2.6-to-1, the highest the ratio has been since June 23, according to Trade Alert data. Calls betting on the shares closing above $30 and $29 by Friday were particularly busy.

Overall options volume was at 211,000 contracts, compared with average daily volume of 179,000 contracts.

Twitter also clinched a multiyear partnership on Monday with the National Football League to deliver video and other content to NFL fans on a daily basis.

Most Twitter Users Not Globally Aware

In a result that highlights the paradoxes of the modern world, a new study says Twitter users are much more likely to connect to nearby places.

Geographers at the University of California Santa Barbara and San Diego State University used Twitter data to identify how aware Americans are of global cities and found that Twitter users are much more aware of places they are close to, CityLab.com reported.

“Our social media interactions are restricted by our physical location. Even online, people tend to interact with others living nearby,” the study said.

The researchers tracked the names of cities in messages that included Twitter geotags, which show a user’s precise geographic location.

They then selected the 50 US cities with the densest populations and collected tweets within 30 km of the centre of each city, ending up with more than five million tweets that mentioned thousands of cities worldwide.

To quantify the geographic awareness of users from the same city, the study’s authors created a global awareness index (GAI).

A high GAI indicates that Twitter users mention international or distant US cities more than local city names.

They also found that Twitter users in large, dense cities like New York and Los Angeles have a greater geographical awareness than users from less densely populated mid-sized cities.

In contrast to smaller places, the authors find that these global cities often do have more awareness of and connection to other global cities across the world.

Replying to Customers on Twitter Can Trigger More Complaints

The response by a company to a customer’s complaint on the micro-blogging site Twitter is likely to trigger many more such complaints, says a study co-authored by an Indian-origin researcher.

The team found that while addressing complaints on social media does improve customer relationship with the company, but it also increases customers’ expectations to receive help, and makes customers more likely to speak up in the future.

That is, responding to complaints will encourage even more complaints.

“Social media is a double edge sword. Companies need to watch out and weigh the plus side against the down side for marketing and service interventions,” said researcher Sunder Kekre from Carnegie Mellon University.

Along with Liye Ma of University of Maryland and Baohong Sun of Cheung Kong Graduate School of Business, Kekre examined the history of compliments and complaints by several hundred consumers of a major telecommunications services provider made on Twitter and the company’s responses.

“People complain on Twitter not just to vent their frustration. They do that also in the hope of getting the company’s attention. Once they know the company is paying attention, they are more ready to complain the next time around,” explained Ma.

Despite this side effect, addressing complaints is still worthwhile.

The improved customer relationship from such effort outweighs the downside of encouraging more complaints, the researchers observed.

The study was published in the Articles in Advance section of Marketing Science, a journal of the Institute for Operations Research and the Management Sciences (INFORMS).