This Could Be a Game-Changer for Twitter Stock
Jack Dorsey has a new game plan for Twitter Inc (NYSE:TWTR) that could change its fate this year. Some new developments should have owners of TWTR stock excited.
Mr. Market is dumping TWTR stock, thinking Twitter’s days are over. But Twitter insiders are quietly building up their stakes. Why? That’s the question I’m going to answer here.
Twitter’s CFO, Anthony Noto, and the company’s executive chairman, Omid Kordestani, bought more of TWTR stock two days ago to further their stakes in the company. (Source: “Twitter’s (TWTR) Kordestani and Noto Both Buy Stock,” Street Insider, February 18, 2016.)
One wouldn’t be wrong to speculate that something is brewing at Twitter HQ that has the insiders optimistic.
If you’ve been paying attention, company skipper Jack Dorsey might have already hinted at what that is.
Dorsey wants to create the planet’s largest “daily connected” audience. Wait! Don’t scoff at it just yet!
It does sound like a long shot when you look at the company’s stagnant monthly active user (MAU) growth. But Dorsey seems to have found a way to make it possible.
Twitter’s moat is unique. This microblogging web site is unlike any other social media platform, including Facebook, Instagram, LinkedIn, Reddit, and Snapchat. Putting it in Dorsey’s words, “Twitter is live—live commentary, live conversations, and live connections, whether it’s breaking news, entertainment, sports, or everyday topics.”
Twitter’s chief has found a way to make this live user engagement more intuitive. In the latest quarterly call, Dorsey said, “Hearing about and watching a live event unfold is the fastest way to understand the power of Twitter.”
Pay attention to the keyword here—that is “watching.” Humans are inherently visual. We like photos, videos, and infographics more than wordy text. This is especially true for the live news industry, where content moves fast.
Dorsey wants to make good use of this power. Yes, your Twitter feed will now look more dynamic and visual than ever. Only last month, Twitter integrated Periscope into its platform, which was just the beginning. With Periscope, users can share and stream live videos on their Twitter accounts. In other words, Twitter users now have access to live broadcast.
Following that, Twitter has rolled out a new feature on its platform today that will allow users to express themselves through dynamic images or GIFs. (Source: “Twitter Just Made GIF Usage Much Easier,” Yahoo! Finance, January 18, 2016.)
That’s not all!
In the last half of 2015, Twitter also introduced the “Promoted Moments” feature, which integrated video advertising on Twitter. With Promoted Moments, advertisers have been able to achieve better engagement with Twitter users. On the other hand, Twitter has been able to better monetize its platform and earn more ad dollars.
What’s even more interesting is that Twitter has also recently filed for a hardware patent that complements Twitter’s plan of live user engagement. The filing reveals that Twitter might be working on a drone that will allow Twitter users to shoot videos and photos and share them to the platform in real time.
In fact, Dorsey has mentioned this to be one of Twitter’s five top strategic goals in 2016—that is, to become a leader in live video streaming.
The Bottom Line on TWTR Stock
Twitter is undergoing a massive overhaul. Every other day, the platform introduces a new feature. The revamped Twitter is finally taking good shape. This new strategy to make the platform more visual looks very promising and might attract new users who have so far avoided this so-called boring platform.
Jack Dorsey’s latest efforts hint that a turnaround in Twitter might be just around the corner now. At least, that’s what the insider trades indicate.
In a nutshell, this beaten down microblogging social media company might surprise the bears this year. Holders of TWTR stock should seriously consider staying put!