UPDATE 3-Twitter likely to name Dorsey permanent CEO - Re/code
(Adds analysts' comments, closing share price, background)
By Yasmeen Abutaleb and Julia Love
SAN FRANCISCO, Sept 30 (Reuters) - Twitter Inc co-founder and interim Chief Executive Jack Dorsey is expected to be named permanent CEO as early as Thursday, while keeping his job as the head of online payment service Square, technology news website Re/code reported, citing sources.
The report was largely welcomed by investors, and Twitter's stock rose briefly by as much as 6.8 percent, before closing 5.3 percent higher at $26.94 on the New York Stock Exchange.
But the news raised questions over whether Dorsey could run both companies at the same time, and whether that would create a conflict of interest.
"Jack Dorsey would be the right guy (for the job) if he were not running Square," said FBN Securities analyst Shebly Seyrafi. "They (Square) have a lot of challenges competing with a lot of other payments companies, and that's going to need a lot of attention."
Some investors said Dorsey was a more effective leader now than in 2008, when the co-founder was fired from his first stint as Twitter CEO. Press reports suggested Dorsey's attention was on other projects, and he struggled to manage frequent outages during a period of exploding growth.
"No one knows the product better than Jack," said SunTrust Robinson Humphrey analyst Robert Peck, citing faster product rollouts since Dorsey took over the top post on an interim basis on July 1. "You can see his fingerprints on the company already."