Costolo stepping down as CEO of Twitter
SAN FRANCISCO – Twitter CEO Dick Costolo, who helped turn the trendy messaging startup into a global town square, is stepping down amid criticism over the company’s disappointing financial performance and a recent stock slide.
Co-founder Jack Dorsey, who served as CEO during Twitter’s early years, will take the reins temporarily while the San Francisco company looks for a permanent replacement.
Investors greeted the move with enthusiasm, driving Twitter shares up nearly 6 percent in late trading after the announcement Thursday afternoon. Both Dorsey and Costolo, however, expressed confidence in the company’s direction and said the board isn’t seeking major changes.
Both men characterized Costolo’s departure, effective July 1, as voluntary. The 51-year-old Costolo said he began talking with Twitter directors about leaving last year, although he did not say what he plans to do next. He will not receive any severance package.
Axovant shares soar on first trading day
NEW YORK – Shares of Axovant Sciences nearly doubled in value after the dementia drug developer said its initial public offering raised $315 million, more than Axovant had expected.
The offering valued Axovant at about $1.4 billion, and the stock climbed $14.90, or 99 percent, to end its first trading day at $29.90. It peaked at $31.17. Several biotech companies have had sizeable IPOs this year and seen their shares jump, including Aduro Biotech Inc., which doubled in value on its first day of trading after a $119 million IPO.
Axovant Sciences Ltd. expanded its offering to 21 million shares and said the offering priced at $15 a share, at the high end of its estimates. It plans to use proceeds to fund research and for general corporate purposes. The shares are trading under the symbol “AXON.”
The company’s main drug candidate is called RVT-101. Axovant is preparing to start late-stage trials of RVT-101 as a once-per-day treatment for dementia caused by Alzheimer’s disease and also wants to study the drug as a treatment for other types of dementia.
Jobless applications inch up, but still low
WASHINGTON – The number of Americans seeking unemployment benefits rose slightly last week yet remained at a historically low level that points to a healthy job market.
The Labor Department said Thursday that weekly applications for jobless aid increased 2,000 to a seasonally adjusted 279,000. The four-week average, a less volatile measure, rose 3,750 to 278,750.
Even with the increases, both figures remain at very low levels. The average fell to a 15-year low last month. Applications are a proxy for layoffs, so the figures suggest that few Americans are losing their jobs.
30-year mortgage rate back above 4 percent
The average interest rate that lenders offered on 30-year home loans shot back above 4 percent this week for the first time since November, pushed by news of a strengthening economy.
Freddie Mac’s widely followed weekly survey, released early Thursday, showed the 30-year mortgage at an average interest rate of 4.04 percent, up from 3.87 percent a week ago.
The average for a 15-year mortgage rose from 3.08 percent to 3.25 percent, and the start rate for an adjustable-rate loan with a fixed rate for the first five years was 3.01 percent, up from 2.96 percent.