Twitter Stock: This Could Be a Big Deal for Twitter Inc

Twitter StockTwitter Using China to Attract More Advertising Revenue

Twitter Inc (NYSE:TWTR) is making waves in China. Twitter stock responded favorably on Friday, as the social media service’s stock rose over six percent in the week started April 12.

Twitter is chasing advertising revenue on all fronts. Just last week, the company scored a major deal with the National Football League (NFL) to broadcast live games, working off one another to increase advertising opportunities. Twitter beat other major Silicon Valley companies wanting to capitalize on the most popular programming of traditional television.

It seems that Twitter’s CEO, Jack Dorsey, has found his mojo again after putting an end to the flaky speculation over the site’s 140-character tweet limit. The decision to reaffirm that limit has reminded people why Twitter exists. Twitter stock increased from $15.60 to the current $17.58 since Dorsey put his foot down on the 140 characters—and not a single character more.

Now Twitter is focusing on tapping into China’s appetite for social media. The company has appointed a new manager for its operations in Mainland China, where it wants to try to attract more advertisers and growth. (Source: “Twitter hires China head in search of growth,” CNBC, April 15, 2016.) Dorsey tweeted the appointment of Kathy Chen as head of operations in Mainland China. She has worked with Microsoft and Cisco in the past.

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Some of you must be wondering, how could Twitter gain from this, given that Twitter itself is banned in Mainland China?

Twitter has an office in Hong Kong to woo advertisers among Chinese companies hoping to promote their products to potential customers worldwide. (Source: Ibid.) Meanwhile, the South China Morning Post noted that the number of advertisers on Twitter in China has more than tripled since the company opened an office in Hong Kong in March 2015. (Source: “Twitter appoints new Greater China head as number of Chinese advertisers balloons over 300 per cent,” South China Morning Post, April 14, 2016.)

Twitter, which recently celebrated its 10th anniversary, has built a network of 320 million users as of the end of 2015.

Admittedly, Twitter stock has gone through a rough period and is just starting to recover from its historical lows. Investors are concerned about its future growth prospects. Yet, if anything, Twitter stock’s low price could be a great buying opportunity.

Twitter has indeed become an essential tool for media professionals and communication. Plus, celebrities and public figures, from show business to sports to politics, love Twitter. Even so, the company is struggling to expand its userbase.

Dorsey has started to revive the company. His priority has been to simplify it to make it more appealing to the public. The other action has been to add video and live broadcasting via its “Periscope” application. The NFL deal shows that these efforts have already started to bear fruit.

In the end, Twitter stock may be worth a closer look at its current price and considering its recent attempts to expand and monetize its userbase.