TWTR Stock: Could This Put a Bottom Under Twitter Stock?

Twitter StockThe outlook for Twitter Inc (NASDAQ:TWTR) stock is rather gloomy as the #RIPTwitter hashtag went viral. The company’s co-founder and CEO Jack Dorsey had to rescue the platform with a Tweet. But will he be able to save plunging TWTR stock?

TWTR Stock: Algorithmic Timelines for Twitter?

So, what’s Dorsey saying about Twitter reordering timelines?

Well, Tweets have always appeared in users’ timelines in reverse chronological order, so users can get a live feed of what’s happening.

However, BuzzFeed reported something on Friday. And Twitter users went furious.

The report said that Twitter is planning to introduce an algorithmic timeline. Instead of using reverse chronological order, Twitter will show tweets it thinks users want to see. BuzzFeed also suggested that the new timeline could arrive as soon as next week. (Source: “Jack Dorsey Addresses Algorithmic Timeline Changes, Insists Twitter is Real-Time,” BuzzFeed, February 5, 2016.)

As news circulated on Twitter, users got quite upset. Some even believed that this would mark the end of the social media platform. Many started using the #RIPTwitter hashtag.

As the outcry became louder and louder, Jack Dorsey had to address the issue with a Tweet. Regarding the hashtag, he said that the company is always listening to its users. Moreover, “We never planned to reorder timelines next week.”

Dorsey further assured Twitter users that the platform would always stay live. He went on to say, “Twitter is live. Twitter is real-time. Twitter is about who & what you follow. And Twitter is here to stay! By becoming more Twitter-y.”

TWTR Stock: Twitter Looking to Use Facebook’s Strategy?

Note that Twitter wouldn’t be the first social media platform to use algorithmic timelines. Facebook Inc (NASDAQ:FB) has been using algorithmic timelines for users’ “Newsfeeds” for years.

While both Facebook and Twitter are in the social media business, their stock prices have traveled different paths. Since Facebook went public in May of 2012, its share price has surged more than 160%. Twitter, on the other hand, hasn’t been so fortunate. At $14.89 a share, TWTR stock is now trading well below its initial public offering (IPO) price.