New Features Are Great News for Twitter Stock
Twitter, Inc. (NYSE:TWTR) CEO Jack Dorsey is striving to remodel his brainchild, while TWTR stock continues to get pummeled on the market. Will Twitter stock ever see daylight again?
Before I go on to address the question, I have to say that the stock has faced an undeserving sell-off following the Chinese crash last week. It is obviously not just Twitter’s stock that has suffered, but all the noteworthy technology names. To say that this price slump has to do with Twitter’s fundamentals is nothing but a fallacy.
Moving on, the Street’s lack of faith in Jack Dorsey as Twitter’s leader has further added to TWTR stock’s miseries. This becomes evident when you look at the stock’s performance ever since the last CEO, Dick Costolo, stepped down.
It would have made sense had Dorsey not been doing enough. You may find it melodramatic, but the way I see it, Dorsey is giving his blood, sweat, and tears to keep Twitter alive. Let me explain how…
The Revolution Has Begun!
Twitter is changing! Yes, the microblogging web site once known to cater only to the mature, news-hungry audience is now revolutionizing both its utility and feel.
Dorsey may have finally gotten a grip on the fact that, much like rival Facebook, the only way forward for the company was to start converting its modest userbase into ad dollars—one way or another.
From “Promoted Moments” to “Promoted Tweets” and now the latest feature, Twitter’s “Conversational Ads,” Dorsey is not leaving any stone unturned. The newly added feature introduces call-to-action buttons on ads, allowing advertisers to directly engage with users. (Source: “Introducing conversational ads,” Twitter blog, January 5, 2016.)
This is a unique feature that I haven’t seen incorporated on any other social media platform, yet. If it clicks with Twitter’s users, it could become the next “it-thing” in social media marketing. Plus, the feature will most definitely attract more advertisers to Twitter.
Previously, Twitter introduced video advertising through Promoted Moments, a way for advertisers to garner more visibility on the social media site. Similarly, Twitter is now also monetizing its logged-out and unregistered visitors through Promoted Tweets, further generating ad dollars.
This week, Twitter has also begun cross-platform integration, whereby its Periscope users can now share their live feeds to Twitter. (Source: “Periscope broadcasts: live on Twitter,” Twitter blog, January 12, 2015.)
It seems like Jack Dorsey is doing everything in his capacity to rejuvenate Twitter and believe it or not, it’s working!
The Bottom Line on TWTR Stock
Twitter is often only recognized for its namesake social media platform, but the company is diversifying more than you think. In addition to its sister social media platforms—Periscope and Vine—Twitter is now venturing into the hardware business, with its latest investments being in music companies and drones.
Meanwhile, all these new and improved features have breathed a new life into the once-dying social media platform. We may still have to wait until the latest quarterly report comes out, but I’m more than hopeful that a turnaround is already underway for Twitter, Inc.
Rest assured, TWTR stock will bring a positive surprise for investors this year.