TWTR Stock: Here’s Why the Bears are Wrong on Twitter, Inc.

Bears are Wrong on TwitterNew Features Are Bullish for TWTR Stock

Times have never been more turbulent for Twitter, Inc. (NYSE:TWTR) as rival Facebook, Inc. (NASDAQ:FB) continues to grow its stronghold over the social media industry. However, Twitter is finally stepping up its game under CEO Jack Dorsey’s leadership and the latest turn of events makes me optimistic on TWTR stock.

Back in July, when Dorsey was still an interim CEO, he indicated that the company will be questioning its fundamentals and going forward, it would not shy away from trying new things. Dorsey is making it evident that he’s serious about what he said and really wants to make the product more user-friendly.

Starting with the replacement of the “favorite” button with a “like” button and increasing the character limit beyond 140, followed by the addition of a highlights feature called  “Moments,” it seems as though the company’s skipper is trying anything and everything to make things work for the company.

The latest feature that Twitter is testing once again contrasts its fundamental model. It’s an algorithm-based newsfeed that shows posts based on relevance or popularity, instead of Twitter’s standard reverse-chronological feed that goes from the newest to the oldest posts.

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Critics are barraging Twitter with criticism that the latest move replicates Facebook’s newsfeed. Many are saying that this attempt to “copy” Facebook will bomb, but I beg to differ. I, for one, am welcoming the move and take it as a healthy sign that Twitter is finally showing some willingness to experiment. Besides, all the little moves have hit the target so far, despite the initial skepticism of each.

Rewind to 2006, when Facebook, Inc. (NASDAQ:FB) first introduced its “News Feed” feature and recall that the site was flooded with hateful status updates, followed by groups lobbying to boycott the platform. The criticism eventually grew so big that Mark Zuckerberg had to personally respond to users’ concerns. (Source: “Calm down. Breathe. We hear you,” Facebook, September 5, 2006.) But did he take down the feature? No! Fast-forward to this day and everybody seems to have made peace with the idea.

Twitter’s introduction of a heart icon for the “like” button, in place of the star icon for the “favorite” button, was met with similar criticism just a month ago. Just as users got accustomed to the hearts, they’ll grow accustomed to the Twitter newsfeed, too. It would, however, make sense for Twitter to provide its users with the option to choose between sorting their newsfeed either for relevance or for most recent, just as Facebook does.

As for the critics who say that this microblogging platform has run out of ideas and is now copying Facebook, the irony is that Facebook has been doing the same. Facebook has copied Twitter’s news-sharing model on so many levels that one often loses count. From “Instant Articles” to “Search FYI” and now the “Notify” app, Facebook has been making repeated attempts to substitute Twitter’s utility by providing a real-time news reading and sharing service. I don’t see why Twitter can’t do the same.

The Bottom Line on TWTR Stock

There may have been a lot of criticism over the platform’s latest moves, all of which have been very experimental and bold, but Twitter is finally doing things right. The fact that Jack Dorsey’s focus on Twitter hasn’t wavered despite his dual-CEOship (of both Twitter and Square) bears glad tidings for the company.

In a nutshell, I believe all the latest moves will turn out to be fruitful for the company in the long run. I’m bullish on TWTR stock.

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