Twilio (NYSE:TWLO) stock is on the rise Wednesday as investors react to news of an activist investor pushing for changes at the communication company.
Legion Partners is the activist investor behind today’s news. The firm is calling on investors to make major changes to the company’s leadership team. Among these are changing the members of the company’s board of directors.
Twilio has reportedly been under pressure from Legion Partners for several months now. The recent push from the company comes as Twilio’s super shares are about to expire. These shares give CEO Jeff Lawson an almost 22% voting right at the company. When these expire, investors will have more influence over the company.
What This Means for TWLO Stock
Twilio undergoing major changes could result in a leaner company better focus on the interest of investors. However, it’s worth noting that Legion Partners’ prior influences include adding members to Bed Bath & Beyond (OTCMKTS:BBBYQ) and Kohl’s (NYSE:KSS) boards. Neither of these companies has performed well recently.
Yet, investors in TWLO stock seem to believe that Legion Partners is on to something with its board change and other suggestions. As of this writing, the company’s stock has jumped 3.7%. Shares are also up 24.3% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.