TWTR Stock: This 1 Idea Could Save Twitter Inc

TWTR StockThis Could Be Defining for TWTR Stock

Mark Zuckerberg has advice for Twitter Inc (NYSE:TWTR) CEO Jack Dorsey. If heeded, it could prove to be a game-changer for TWTR stock.

In a recent open-house Q&A session in Berlin, Mark Zuckerberg was asked what he would do to save Twitter if he were the CEO of the microblogging web site.

Before hinting at the solution, Zuckerberg discussed the parallels between Twitter and Instagram. Bear in mind that Instagram has recently beaten Twitter’s monthly active user (MAU) numbers. Twitter’s MAUs hover around 320 million, while Instagram’s have surpassed 400 million.

According to the Facebook CEO, Instagram has given public figures the ability to share their lives in an intuitive way and has allowed fans to follow and connect with their favorite celebrities. Twitter, essentially, does the same.

He then went on to point out that one thing he thinks would be the “Holy Grail” of all social media companies going forward.

Everything “Live”!

“‘Live’ is going to be an awesome thing for public figures. Imagine your favorite public figure or politician having the power to broadcast from their pocket, go live, have an audience of thousands of people,” said Zuckerberg.

Facebook has recently launched a live broadcasting feature on its platform. Zuckerberg hinted that Instagram users might soon see something similar. He went on to suggest that Twitter should follow suit.

“I think you’re going to see a lot of that on Instagram and Facebook, and if the Twitter folks do a good job, I think you’ll see a lot more of that on Twitter too,” said Zuckerberg. (Source: “Mark Zuckerberg tackles question on what he would do as Twitter CEO,” Fortune, January 26, 2016.)

The best part is that Dorsey might already be working on Zuckerberg’s advice. In the last quarterly call with shareholders, Dorsey hinted that he wants to bank on Twitter’s live feature.

Dorsey wants to create the biggest daily connected audience that can access and become part of live commentary and live broadcast of everything from news to sports, entertainment, and beyond.

Dorsey has even found an ingenious way to make it possible. He integrated Periscope with Twitter last month, allowing Twitter users to broadcast and stream live videos on Twitter. Twitter’s other big acquisition—Vine—also creates a similar engaging video-sharing experience on Twitter.

Take, for instance, the Oscar night that unfolded on Twitter through live Periscope streams, vines, and tweets. It was a captivating experience for users not tuned in to the live broadcast of the event. The event climaxed on Twitter when millions took to the platform to celebrate Leonardo DiCaprio’s win. In fact, DiCaprio’s win broke all Twitter records to become the most tweeted Oscar moment in history.

We have to agree that no other social media platform entertains that kind of live engagement—a bullish indicator for TWTR stock.

The Bottom Line on TWTR Stock

Content moves fast in the media industry. What’s hot today is forgotten tomorrow. Social media platforms like Snapchat, Instagram, Facebook, and Twitter have initiated a proverbial arms race, where everybody is competing for likes and followers. It’s the “live-sharing” feature that keeps you ahead of the game.

Facebook has realized this in time and has already started to incorporate it into its platforms. But Twitter already enjoys an edge here. Twitter’s future now rests on how efficiently it can create a live engagement experience for its users.

If Dorsey hits the bull’s eye here, TWTR stock could see a turnaround much earlier than expected.