anyway, more details there. >> much-needed. thanks. appreciate it. my thanks to the panel. we have 15 minutes to go until the conference call with twitter. melissa lee, there is going to be a ton more that we find out, i'm sure then and as people do the play by play and what happened in the past week and try to figure out what triggered this turnover. over to you guys. >> we'll have the details. ""fast money" " starts now. overlooking times square, i'm melissa lee. the massive shakeup at twitter continues. dick costolo officially out. he'll depart july 1st. co-founder jack dorsey will step in to serve as interim ceo. we'll have live coverage of the conference call. in the meantime, let's get to david favor who has more details about the departure, david? >> melissa, given the pressure costolo is under, many thought he would be forced out but that's not the case. in speaking to people close to

the situation, they indicate as it's been said, that's a decision he's made and started to come to, communicated to the board there is a lot of board conversations that have gone on since then and that it is his decision, as it's said, to step down earlier of course, kelly and the gang pointing out the lack of severance. it is a change, one of course, we don't know the full answer to given mr. dorsey will step in on an interim basis but a search is going to begin. sources saying hey, it's difficult to do a search without getting out there publicly. it would be difficult to under take one. it certainly might have leaked and undermined the leadership of mr. costolo at the time. now it's out there and july 1, of course, they transition to the interim ceo mr. dorsey and able to under take a broad ranging search for a full-time successor to mr. costolo who

again fact said it's time for him to go. >> yeah, i mean, people and investor haves been calling for his head, david, for quite sometime so it is easy to imagine that he is, in fact, tired at this point. you mentioned before he communicated intentions to the board earlier this year, does that imply that the board actually wanted him to stay on? >> my understanding is that he at least made it clear he was thinking about a departure and mentioned that to the board. i don't believe he made it clear to step down until more recently, and so i do believe, you do wonder whether the board might have been able to perhaps get a beat on this and get a little bit more out ahead of it

but clearly, they were, they were at least warned that it might be a possibility. again, based on the conversations i've had with people familiar with the series of events that took place, melissa. >> what's your take on whether or not this opens the door to some sort of accusation with twitter? >> you see companies consider both paths before they choose one. in other words, a company will say we're exploring options and potentially looking for a ceo. you don't hire a new person unless you're committed to remaining independent is often the case they don't want to the make a commitment of that type to some new leadership to sell themselves. in that case, that doesn't mean that others won't see this as an opportunity perhaps to extend some sort of out reach to the company if there is interest in potential buyers, i'll leave it to you melissa and your panel to discuss who might make good sense. i've heard nothing on that front at this point and the company not, of course, saying it's

exploring options other than finding a permanent ceo. >> karen has a question, david? >> you opened the door maybe they didn't make out going calls but this is the time to make an incoming call to i guess it would be jack dorsey to say hey, let's sit down and talk before you find a new ceo. >> i agree. i think if there is an opportunity and there are potential acquires interested, there is no time better than when you see a transition here and prior to them hiring somebody full-time. so we'll see. you know, you guys can guess as to who might be interested or whether there really is interest, of course, the company is in the midst of transition and there are questions about the business model. perhaps, some other name haves a better idea what path to go down. we'll see whether in fact they get any in bound inquiries as you say while they go through the transition. >> one little paragraph in the release, david, is sort of being looked over at this point and

that's the affirmation of the second quarter outlook and i'm wondering if that was an important part of this release. this could have been the opportunity to kitchen sink it and say we'll throw it all in and allow ourself as leeway to miss the numbers, but instead, went the opposite route. i'm wondering if that's sort of you know what, this was volume for voluntary on the part of dick costolo. >> i think it was. as you well know, when you see releases like this with the imminent departure of a standing ceo, often times it's an opportunity for companies to include, by the way, we're not going to hit numbers and sometimes of course we figure out they aren't going to hit the numbers because the guy isn't doing a good job, hence he got fired and they reaffirmed and the market is responding positively. it is odd, but it does happen, guys do step down. as you guys know better than anybody, he's been under a magnifying glass a lot of stress, a lot of strain, and a lot of criticism coming his way,

but it does appear his decision was voluntary and of course, he's staying on the board of directors, as well. >> david, thank you for that update. we'll check back with you later in the hour. david favor will be joined by out going twitter ceo dick costolo and jack dorsey at 10:00 a.m. eastern time on cnbc. for a long time we said either thing haves to get better at twitter or the ceo has to be out. dan nathan, you fell into that camp, that's why you're in. >> i did. you have to think about twitter in this capacity. they are in the global advertising market and expected to have $2.2 billion in sales and google will have $60 billion. when you think about what is going on here, they are a small player. they have this amazing unique micro blogging platform that has amazing potential and i'm longing the stock here but they have to figure things out because user growth has sloan and when you think about it, they have to figure out how to grow this engagement, the user base, so advertisers want to go

there and advertise there. i believe they will need to be in a much larger media property like google to get the scale of a facebook. >> i think it's interesting here, up only 1. 90. that's good. you also maybe thought you wanted an acre sessicre acre ac. the third thing since they didn't guide downquisition. the third thing since they didn't guide down , to me only up 1. 90 is interesting. >> dan did something a week or ago. and held there and bounced and it's okay here and fine here. this is probably anymore from a 30 to a $35 billion deal that apple or google could do in their sleep and would make a lot

of sense for either. >> let's take the other path and say who would be the next ceo? >> we know this just happened. who is out there as successor and that's important to investors because that will say which direction this company will take. will they be more technical? will they be more user friendly and advertising? that will really set the tone. so it's very important. >> we have more breaking news on twitter. let's get to the newsroom. >> jack dorsey, one of the founding forces of tweeter making his first tweet in reaction to the news we have of dick costolo stepping down. in his first tweet since the announcement came out, he says thank you for everything @dickc, you built an amazing team and company #proud and links of course to the press release of what is going on at twitter. again, jack dorsey making his

first tweet perhaps appropriately given the fact that dick costolo just stepped down but a favorable tweet. the new interim ceo and founder of twitter itself. guys, back over to you. >> thanks for that update there. back to who could be the actual ceo. it's important if it's going to be a grownup ceo or somebody that was sort of a founder. >> remember, because google went through this when they brought in eric smidt. more investor friendly face that could be good. i think whether you buy it or sell it you do buy it. i'm in karen's camp. up $1.90 on this news, the door is open to so many more things than yesterday. i think 1. 90 or $2 is not so bad. >> look what bob peck said on the halftime report back in december. >> does costolo, dick costolo,

the ceo make it out of 2015? >> it's the number-one question i get. should he step down this year? is there a couple interesting candidates there. >> bob peck is here now. will be with us throughout the hour he'll be listening to the conference call. great to have you with us. should the stock actually be up much more? >> yeah, a couple things, one, remember for the guidance they did reiterate that and the may and april and now even into june hasn't been that strong so it all of a sudden is the platform a shrinking platform and maybe not growing, that could cause concern for investors. the real thing here, the big notice we need is something would happen with the chris post why didn't these suggestions happen years ago, three years ago, a year ago?

they are so on point and the fact it was a public post whether than a letter to the board gave indication dick wasn't going to be around for the rest of the year. >> what will happen next? >> there are interesting c candidates. former board member that runs flip board, interactive media type of twitter, ed williams could be interesting to see if he came back as the product guy. kevin systrum. they don't have a ton of respect for his great cfo but i don't know if he's a ceo or marissa mayer. >> you don't want to see somebody who is a seasoned chief executi executive as opposed to somebody in a social media area. >> there is a combination, that's about a big huge media property and ran still runs it

over at facebook. so it's a bunch of different choices and tech base, more media based. >> bob, you talked about the last two quarters and it is a problem. when you think about the potential potential acquirers, google plus, if you want to generate increased user growth and increase monthly active users put them on a platform and facebook is buying, what is active? they have been buying, messages, clicks a lot of boxes. doesn't it seem like an obvious use of the $65 billion in cash? >> couldn't agree more. they did look at it a bunch of times and makes sense. the question is would you make this move to dick costolo now if a deal was on the table or not

go through the ceo transition and hiring a firm to look for a ceo. maybe not as imminent as some think. >> if you had to give odds on whether or not it would be acquired. >> yes. >> what would they be? >> as far as near term or ultimately? >> near term and then ultimately. >> near term not very high and i think the board has visions of a much larger platform and targeting 800 million users going to the a billion. a new ceo is coming not to sell the company but build it. >> build it bigger but not sell it. in the second quarter they did not mention aeus in the affirmation. you think they miss? >> you can see that we said there is potential at this quarter maus decline, not grow slower, actually decline sequentially. that can be a concern. >> what are the chances of you mentioned evan williams, he was the guy before. what are the chances he comes

back? he's hanging out there now. >> probably one of the announcements that came out is they expanded the 140 character limit. he run as long-form blogging tool there is room for both. you could see once again this could be conjecture how medium could play as part of twitter and the product guru comes back. >> and evan williams. >> when you talk to investors, which type of ceo, and we're at wall street investors. >> we would like to see more product. the other name i didn't mention is adam bayne. he's one of the key assets of that firm so if adam doesn't become ceo, who could he work for? he worked for ross levinson. i can see that working. either way, you need a strong product guy there to developed

products chris saka talks about. >> you called for this to happen. we played the clip. at the same time, are you surprised at the timing of it or sort of telegraphed by every single, every single time we saw dick costolo, he looked hagered. the most recent he had at the recode conference to whether or not he would be on the job was something like i can't, i'm not focused on whether i'm going to be on the job today or tomorrow or next week or a month. that seemed vague to me. >> the exact timing, we have no idea. i think the chris saka pose was poignant. why was that public out to investo investors? that was on point. >> we'll let you get to the red phone and dial into the conference call. dick costolo and jack dorsey will be on cnbc 10:00 a.m. eastern time. don't miss that. the twitter conference call moments away. josh lipton is going to be on the call. we'll bring you the latest and more from dan niles alpha one.

he bought twitter. is he buying more? we'll ask him. rupert murdock is out. lays out his reasons why the youngens just might be the best thing for the stock in decades. and later, the massive apple block trade that took the stock tumbling behind the big unload and what it could mean for investors. let's of news to get through this hour so stay with us. atte! vectorvest mobile is here and it's free! make faster, smarter, better trading decisions with vectorvest mobile. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes, ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started

the twitter conference call just got underway. we understand dick costolo is taking the lead in the call. let's get to it. >> so there is never, ever a perfect time for a transition like this, but given the company's current extremely strong team, the pace and quality of execution that i've talked to you-all about over the course of this year and the resources available to us, we as a board are confident that we can execute a smooth transition here. first off, we're in the extremely unique position of having the ideal leader to facilitate the transition while the board conducts its search. jack is not only our chairman, which involved him in every

important strategic decision we've made, he's also the inventor of the product and a co-founder with a deep connection to twitter, it's products, my team and all of our employees. jack is going to take on the ceo position on an interim basis as of july 1. i want to once again point out that jack thinks elegantly and deeply and engaging user experiences and i'm delighted he's stepping into the role. he will be supported by the strongest management team twitter has ever had, which was another factor in my decision to time this transition when i did, and in addition to that world-class team, we have a great foundation in place with a very clear strategy, which we talked to you about and objectives and priorities that map to that strategy. you want to do these things when t it's stable, robust and there is a plan, clear plan and a clear path forward against that plan

and that's where we are today. so before hand, get over to jack and then opening up to q and a, i really just want to thank the tremendously talented group of people here i've gotten to work with. it's been a total delight to work alongside everybody and been such a part of such a great team. i want to thank the board obviously and my leadership team for the confidence they place in me. it's been a huge honor and i look forward to supporting twitter in any way i can going forward and with that, it's over to you, jack. >> thanks, dick, and good afternoon. start off by saying a huge thank you to dick for his dedication -- >> we've been listening to the twitter conference call and dick cost toolo saying there is neve perfect time for transition but had a great lead near place and great management team and that's part of the reason he decided this was the time to do this. interesting to see twitter shares in the after hours session still up 5% but off the highs in the after hours, it was

up as much as 7.5% on the news earlier. >> it's interesting that he said that one, the discussion started a year ago and two weeks ago he said i'll be here as long as possible. he did say he's in sync with the board, maybe they are in sync he's going to go. i wonder what happened that made him say this is going to be it. >> bob said it, it was the saka thing and the sediment couldn't be worse. they filed the other night on the show 10 million shares of selling shareholder. it was a sentiment thing. the timing was good because they can do a lot of things and have a free pass until they find the new ceo. >> couple years ago, three years ago, i'm not comparing but if you recall, everybody was calling for the head of mark zuckerberg and the facebook floundering in the high 20s.

they figured it out. maybe not, i don't know, but it's too valuable of a property to mess it up. you stay on the stock against 35. i don't think anything changed other than what we're talking about now. >> you mentioned that it's getting interesting. is this something you would stake a stake in? >> it is. the only caveat, if they go down the path and find a new ceo, which is quite likely, then that person may, in fact, do that, kitchen sink the quarter. >> not off the table for the kitchen sink. >> yes, but it is interesting. i do think there is change here that was needed and it does open that door there is a chance it's bigger today than yesterday. >> go ahead. >> if you want to trade it, actually, that's an opportunity because you have the free pass that dan is talking about so the stock goes higher and when the new ceo comes in, you take the profit, wait for the kitchen sink quarter and bite again.

>> i want to bring in bob peck into the conversation and by the way, on the conference call, costolo handed it off to interim ceo bob dorsey. what is your impression? >> jack dorsey got on there and made it clear it's not a reflection of near-term results, that the operations remain strong, it's a good time to do it and the timetable for this, there really is no end point. they will do a thorough process looking internally at candidates and externally, as well. right now they are opening it up to q and a and i would look for analyst to dig to fundamentals and candidates they will look at. >> what's the question you would ask, bob. >> maus. how is the platform growing and what are they seeing so far and reaccelerate maus and what types of products would they implement and what do they think of the post. what did they agree with, not, i'd like to get more color. >> it would be interesting to see if analysts are skeptical the way you are.

so fill us in, bob. thanks a lot for that, bob. >> thank you. >> i think that is interesting because not only is kitchen sink quarter not off the table, a miss isn't off the table, either. >> i have a question for karen. there is no evaluation met tricks that make sense for this thing. you would buy the stock because you think this company is a very scarce social media property and to me this goes back to google which i know you're bullish on. google needs twitter as much as twitter needs to find a platform. google has three massive blind spots, they have youtube but realtime search is a real problem for them and then the social mobile messages platform which they don't have and look what facebook has done. they spent 25 billion between instagram. it's an arm's race and that's why google has to get in there. they don't buy for evaluation. >> let's take a quick break. still ahead, we're all over the biggest news in tech tonight. dick costolo is out and we talk

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hour or so, dick costolo is out. our next guest used to own shares, dan niles, found of alpha one capital joins us on the fast line. dan, is this news enough to make you take a look at twitter? >> not enough information, but the one thing i would say is that the fact that they reaffirm q 2 means absolutely nothing because you've got full year expectations and generally, you don't have a ceo that you get rid of because things are running well, and i think it was just less than a month ago somebody asked dick costolo about his job and he said yeah, everything is fine, i'm safe or something to that effect, which i remember. so, you know, at this point, quite honestly, as soon as i finish with this interview, i'll be on the conference call to listen to what they have to say. they've had problems since they became public. let's not forget they miss the the first quarter out of the box with expectations and user growth and it's been a problem now for well over a year, so this isn't a recent issue.

this has been going on for awhile, and, you know, and the valuation of somebody on your program just said, you know, there is no valuation support for this because it's not very profitable. if you're buying it, you know, you're buying it because you believe it's valuable from a longer-term basis, the people will be tweeting out five, ten years from now and it could be valuable potentially to another company or with a different leader at the helm. >> do you think that twitter is now a takeout target? >> i think it's been a takeout target, you know, for awhile. i know -- >> does it make it more of one now? >> you know, any time you have a ceo switch, i think people start to think more broadly. so are other companies likely to sit there and go, boy, it's really screwed up and if the stock drops even more because yeah, they reaffirm q 2 but if you remember in q 1, that was the problem. they came out, q 1 wasn't so

great but the bigger problem is they said q 2, we're not going to have very much in terms of monthly active user growth, even though q 1 came in at the low end of the range, is that wasn't great and q 2 took down the guidance. what is going to happen to the rest of the year? is going to happen to the profitability, which they don't have much to begin with and expectations for user growth? at that point, a bigger company may sit will and say maybe it's finally gotten cheap enough and i think i know how to fix what the problems are that, you know, maybe takes, makes some sense for me to take a look at. i think they have real problems. >> you said that you're skeptical about their guidance, about the fact they affirmed the second quarter and yet, you'll jump on the conference call. you seem interested. what piece of information is critical to you to determine whether or not you would consider buying shares? >> well, i mean, i think there are two things, and i said this multiple times and i said the

this with facebook when they became public, there is a difference between a great company and a great stock, right? people get those two things confuco confused all the time. twitter is a great company, just not selling at a great valuation relative to the growth met tric right? they have to grow active monthly users and terms of making it profitable and also quite honestly, if those are fine, what does the valuation look like relative to the a reset on the growth profile? at this point we don't know about q 3, q 4 or what the long-term growth is. what if they say we think we're going to grow users 5%. >> hey, dan, i would push back on it and say not only is it a bad stock, but a bad company, it's a great product and you can differentiate between all three. >> you said it better than i did.

>> that's the point. so it's the product, the management is a disaster. i think their execution is bad and product development is bad and the stock is a train wreck for people buying it at all the wrong times in the high 40s and 50s and selling it down in the 30s. to me, i think they need to fix the product and i don't believe the people there are the ones to do it. >> well, and maybe looking at it slightly differently, i think one big problem, you run into the this with management teams all the time, which is they have a bad quarter, and then they raise the guidance for the next quarter because they don't want the stock to go down. that's what happened. they set a my bar for q 1 and did everything they could to make it and ran out of gas for the next quarter because they pulled out a lot of the positives, and so part of the issue here is not even necessarily the management team growing this because this may not, i don't like twitter using it or consuming off of it like facebook. i don't care what kim kardashian does, i care what my family does.

the size of the two companies i think are different. so for me, i think part of the issue has been is that management has set expectations way too high in terms of the ultimate potential for the company and as you rightly said, it's a great product but the expectations around the company, they were just completely mismanaged. >> sure, dan, last quick question here, i know that you like facebook. you're an investor in facebook. does this open any sort of opportunity for facebook to gain more, add dollars now that twitter is in this transition? >> well, i mean, facebook has been gaining dollars consistently. this obviously, you know, when a competitor of sorts is in disarray, it's always a great thing, right? there is never a time when it isn't. i'm surface book will be looking at the engineers that they can get out of twitter, as you know, there is a lot of executive turnover there before dick costolo has gone now. i think on the margin, this is great for internet companies out there including facebook.

>> dan, going to the leave it there. thanks so much for your analysis. we do appreciate it. >> thank you. >> dan niles of alphaone. >> the last five, six kwaurmters for facebook are fantastic but the stock doesn't want to go through $85 and made another run unsuccessfully. you made the point twitter, facebook could be but i think facebook is going higher from here. >> and again, tomorrow, out going twitter ceo dick costello and jack dorsey, the interim ceo will be on cnbc at 10:00 a.m. with david favor. tune in for that. still ahead, we're over the biggest news in tech. again, the conference call is underway. we'll have what it means for shareholders when we return. you probably know xerox

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we're back and there is only one story the world is focussing on now. dick costolo stepping down july 1st but will remain on the company's board. jack dorsey will become interim ceo. twitter will look to fill the position internally and ex ternly. twitter's call just wrapping up minutes ago. josh lipton joins us with the latest, josh?

>> melissa, let me bring you color from the call from jack dorsey, specifically. dorsey saying he wants to continue the good work that dick costolo and his team have been doing, that he's excited to work with the twitter team on what he says is an exciting lineup of products. he mentioned periscope for example and says they have huge unmatched potential and also wanted to make clear of why this transition is happening so take a listen to that. >> one thing i do want to make clear is that this transition is not the result of anything more than dick deciding to move on from his role as ceo. >> dick costolo said something interesting, which he said he thought the company would have been further scrutinized, melissa, if he stayed on, back to you. >> all right. josh lipton, thanks so much. let's get back to the analyst who predicted correctly that costolo would not survive 2015 as ceo and that's sun trust robinson's bob peck. did you get your answers on

maus? >> you know, we did. it was suddenly in there. four take aways, mna gives a responsibility and number three, going to split time. he's ceo split square and number four, you just asked me was anthony did say that on the earning's call, they saw a deceleration or non-benefit saw on q 1 in april and reiterated that in may and as of today you're still seeing that. sounds like the maus are under pressure and that's updated guy ma guidance there are core msus, which they are talking about and total maus, which is sms guys from india. >> bob, in term thes s or sayin strategy, isn't the point they are calling for costolo's head they want a change of strategy?

>> they are working hard on product development and probably a lot of things chris saka pointed out are in the works. that's probably his main point is they will continue to evolve the product. >> we talked to dan niles and he mentioned this could be a good time for other companies in the valley to go poaching at twitter. could there be a brain drain? >> that's always a risk. i think right now the key question will be when can you get a ceo in there and who will the ceo be? as i mentioned earlier, a couple candidate there is and i said before one of the prized assets of the firm is adam bayne. >> how crazy would it be, i mean chris is not a dumb guy. if you look at his resume, he was doing college level math at 11 years old. was that out of the realm of possibility for him to sort of take this spot? >> yeah, as far as because i don't know, you have to ask him directly. i don't see him stepping into the ceo role. he's a prominent investor with investments across a bunch of

different companies. i don't see him step income there. you can see him as a quazi advisor. >> just to be clear, you believe now after hearing the conference call that twitter will, in fact, make the quarter on all metrics essentially, all important ones? >> no, what anthony said on the call was that these weakish trends kick off in april continued in may and even continued through to the day and you could see the first sequential decline ever. >> that's still on the table, that miss. bob, hold on, at the recode conference, just recently, kara swisher asked if his job was secure. take a listen. >> will you be there at the end of the year? >> look, i have to focus on my job and what i've got ahead of me. i don't worry am i going to be working here? i focus on my job. >> you feel you're in sync with

the board? >> i don't feel like i'm in sync with the board, i know i am. the board and i communicate regularly. one of the things i do is probably overcome mun ka-- over communicate with them. >> kara, when you ask that question, you got that response, did you think he's going to be out? >> yeah, definitely pressure on him and has been pressure, which is why i asked the obvious question everyone wanted to know, did he feel like he would keep that job and was he on the ninth of his nine lives kind of thing? >> what's your impression of, i don't know if you were able to listen to the conference call but the fact costolo and dorsey tomorrow will speak with dorsey, favor and costolo, what is your impression, how well orchestrated this is? >> well, i think they are trying to put the best face on the

situation. when any ceo has been pushed or jumped and i think this is a case of both in a weird way, they are trying to put out this is something dick wanted to do. change ceo is a big deal in the company and this particular ceo has been under enormous pressure with performance. millions of dollars in running and stuff has been more rocky. and so, you know, i think that the board, they just found out this week that jack could take on that role and that's why they did that now. trying to figure out why now before and so it's just, they are definitely trying to finish and say we have it under control when in fact it's less than control. but they are trying to do that, that's normal. >> hey, kara, do you think that this is a sense of relief in side the executive suite? there is a lot of the turnover

and dick had the potential to be a controversial figure with jack dorsey coming back, do you see executives being reinvigorated in the near term and then obviously setting the stage for a brand-new ceo? >> no, i don't know. of course not, change is very hard especially with the ceo. i think for twitter, you know, there is two possible ceo candidates, anthony noto and adam bayne and all kinds of picks for that job and the question did twitter put a for sale sign on it self. google would most certainly look to purchase. it will be an interesting time. it's up to the board to form the committee and led by a third person, so we'll see if that's the intent and see what the interest is in it and whoever the ceo, can they do it.

jack dorsey was the first ceo to be fired and then kevin was fired and dick is leaving or left or however you want to put it. this is a company that had three ceos in the very short history so the next one really has to stick. >> all right. kara, thanks a lot for phoning in. >> thanks a lot. >> kara swisher of re/code. she did that interview of whether or not he would remain ceo. >> looking back at the ent interview. he was nervous. the reason the stock is trading down right now to me is one, the maus that bob talked about and strategy question, the fact that i know they have to the at least, you hope this is what they have to say we like the strategy that dick costolo is do, we'll keep it. you hope that changes because it's not working. so let's hope it's just kind of what you have to say but the strategy question is key.

>> it's what you have to say to make it seam like dick costolo left on his own terms and everything is fine and good and happy within the twitter family but when the new ceo comes in, yeah, you want somebody to do something drastic to jolt that stock. >> it's too valuable property. there is, is it mismanaged, yes. to me the property is too valuable. somebody will figure this out against $35. >> take a look at the move in the after hour session. the decline, we saw from the high is on the news that dick costolo would be stepping down on july 1st. the stock is up 2.5%. it had been up as much as 7.5%. again, as bob peck mentioned, they talked about maus still declining for the quarter and that could be taking the stock down. we'll continue to follow this action as we progress. still ahead, we have more of the twitter shakeup and how the

twitterverse is reacting. fox ceo rupert murdock is out and his sons in. what may be a huge catalyst for the stock. stay tuned.

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welcome back. in case you're just joining us and tuning into the news here, dick costolo is stepping down july 1st, jack dorsey will be the interim ceo. we saw a wild ride. the stock was up 7.5%, as much as 7.5%. take a look now, the stock is up by just about $1. let's get back to josh lipton whose got more from twitter's conference call that just wrapped up, josh? >> well, melissa, just more color from that conference call when jack dorsey fielding questions about why he wants to take on this role and take on this added responsibility, after all, still running square, here was his answer to analysts. >> one of the reasons that i'm stepping in to this interim roll is because of the belief i have over our direction and strategy and specifically around the product. i have a lot of contact support as chairman as talking with the

management team and running it and i do believe that it is right and i don't anticipate any change. >> now, as to that question of the search for a permanent ceo, dorsey saying the search is only just beginning and there is, he says, no timetable. melissa, back to you. >> josh lipton, thanks for that. let's get back to bob peck. let's say twitter puts in somebody from within the company, would that be a huge disappointment? >> not necessarily. as i mentioned before, someone like adam bayne has a ton of respect in the organization. he has 1,000 people reporting to him and knows the media and business well. having said that, i also think someone like ross levinson would resonate very well and anybody that can show that they have got product road map and the company can build on and improve fundamentals would be well-received. >> what is your guess on how the stock reacts?

is it another pop? >> it could be a pop depending who they choose. things can actually make that change and implement change to product and improve the fundamenta fundamentals, you'll see a good reception. >> when there is no change of strategy, at the end of the day you do want a change of strategy, correct, from the new ceo. >> you want to see faster development and more clarity, more color in what are these products, what is your reaction to the post and how should we think what will change the trajectory of the base to more of a billion-dollar target. >> i'm sure you're going to publish a note tonight for distribution tomorrow morning, bob. what's your message to clients as we see the big pop in the after hours session, essentially dissipate in the after hours? >> it's interesting to see the company embrace change and i said publicly before, i'm concerned about the user base here, particularly maus decline sequentially from q 1. i think that could be an issue here. until we get more clarity on a ceo and changes in product,

we're here. >> all right. bob, thanks so much for joining us and sticking with us for the whole hour. bob peck, sun trust robinson who correctly predicted that dick costolo would not survive as ceo by the end of the year. all right, so quickly, twitter, thoughts, trade. >> against $35, it's a unique property mismanaged. the stock is great but against $35 you play it from the long side. >> you're looking? >> same, i agree. you and i were talking on the break and i think it wouldn't be shocking to get some whiff of takeover speculation in the near term. >> i think you buy it. the narrative needs to change from we're going to keep the strategy to we're going to build on what has already been done and change it. if you can change the narrative and i think they will, you continue to see twitter go higher. >> dan nathan? >> you know, if the company was sold for $40 billion, the company went public at $ $26. that would be a massive, massive

gain for anybody predeal. that wouldn't be an acknowledgement the product is broken but the management is broken but they need a change and need to be part of a larger media property. >> all right. our thanks to bob peck for staying with us for the whole hour. up next, how the twitter verse is reacting to the news of ceo costolo leaving the helm. stay tuned. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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all right. check out reaction from the twitter verse on the news dick costolo will be stepping down on july 1st. box ceo aaron levee tweeting twitter under jack was great, twitter under dick was great and twitter under jack will be good. snoop dog said i'm ready to lead twitter, #snoopforceo. >> you a fan of snoop? >> i'll a big fan. >> what kind of music? >> rap, he's a rap artist there is his stuff there. >> like that. >> sure. >> okay. >> we should note, in fact, let's take a check on twitter's stock in the after hours session, you've been seeing that pop dissipate as we have gone throughout this hour and as we

did understand and as investors sort of are starting to digest the fact maus would decline, the stock is up by less than 2% right now. time for the final trade, go around the horn. >> up 2% right now that means it could be red in the morning here. it's disappointing f you're a trader and jump in, you can expect anything happening soon. use $35 stock to the downside if you step in. i'm long, i'm sticking with it. >> brian kelly? >> outside of twitter, these markets are being driven by europe, particularly the eros and against 114, you can be sure the way you do in an equity apart and i say snoop for ceo. >> karen? >> i like google right here. it's sort of in the twitter for discussion but good evaluation. >> a lot of things happened today we didn't get a chance to talk about and we'll address them tomorrow. no doubt. t-mobile news after the bell, as well. dish may be in the works, who

knows. stocks higher. tmus gets you done. >> last reminder, tomorrow at 10:00 a.m. david favor will have the exclusive, the out going ceo and jack dorsey the interim ceo of my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to be friends. i'm just trying to help you make some money. my job is not just to entertain but to teechbd educate so call me or tweet me @jimcramer. sometimes all it takes to entice buyers is the slowing of a decline. i have been telling you'm