Market Reacts Strongly to Twitter’s New Feature – Stock Was Up Seven Percent on Day

Twitter’s new feature

On March 14th Twitter stated that they were working on a “camera-first” feature. After delivering the news, Twitter’s stock spiked, rising over seven percent on the day. Although early in development, the new concept is said to resemble some of the Snapchats features while being integrated into Twitters existing platform. It is said to incorporate photo, video, and location. That being said, there is very little known about the new feature and nothing can be confirmed.

What does this new feature mean for Twitter? Why did the Market react so strongly?

To back up their successful earnings report, Twitter will need to report strong earnings in the upcoming quarter in order to increase or maintain their current stock price. To do this, Twitter will have to optimize their advertisement capabilities to maximize their ad revenue. Their new feature plays a huge role in increasing their ad revenue as it is an entirely new part of their platform which means entirely new advertising opportunities. Additionally, video advertising is significantly more expensive than text, therefore, many believe that this “camera-first” feature will have a huge effect on increasing ad revenue. Also, this new feature will allow Twitter to compete with other social media platforms such as Snapchat as they now too will be placing advertisements between photos and videos, similar to Snapchat stories.

What do we think of this new feature?

As it is the beginning steps of developing this feature, it is very difficult to understand the specifics of what it will look like and how people will react to it. We believe that a “camera first” feature in which the user can use their camera to post current/relevant photos or videos will fit seamlessly into Twitter’s current platform. Twitter specializes in current day to day topics in real time, this new feature will enhance the user’s experience by giving them the opportunity to express their ideas and feelings through real-time photo and videos that they take. That being said, there have been instances in which new social media features receive a lot of backlash from their platform users at first (ex. Snapchat update, Instagram stories). Even if Twitter’s new update doesn’t get a positive response at first, we believe that the platform’s users will eventually learn to get used to using it as they did with the other social media features mentioned above. Although in the early stages of development, we feel that a feature of this sort would be huge for Twitter.

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

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What Social Media Networks Teens Use The Most – Facebook, Snapchat, Twitter, or Instagram?

Teenagers are always looking at their phone, circulating between social media networks, but do you know which platform teens use the most?

Did you guess Snapchat, Facebook, Instagram, or Twitter?

You probably did. These 4 social media platforms make up 87 percent of teens top preferred networks. However, Snapchat prevails as most popular with almost half of the teens selecting it as their top social media network.

A survey conducted in 2017 shows that 47 percent of teens prefer Snapchat as their top social media network over any other social media networks. Next was Instagram capturing 24 percent of teens. Facebook came in at 9 percent and Twitter 7 percent. 

Our View: In our eyes, the statistics are spot on. Snapchat is absolutely the most common to the teenager life. Streaks, which are created by sending at least one Snapchat back and forth to your friend per day are what keep users coming back day after day. This is why Snapchat has been able to accumulate over 187 million daily active users. Stories, which are 24-hour posts, are an awesome way to keep up to date with what your friends and favorite celebrities are up to. The snap map, which shows where all of your friends are geographically, is an incredibly cool feature that Snap has created, that allows friends to locate each other.  And last but not least, the discover section, which is a place where users can explore news, sports, and anything meaningful going on in the world.

Instagram is incredibly popular for teens. This is where teens usually post their best photos from their best experiences. When people post on Instagram, it is a big deal, compared to posting on Snapchat and twitter which are basically daily updates, posted more casually. 

Our experiences match up with data as we see teens spending the majority of their time on these two networks.

This leaves Facebook and Twitter. Facebook, by the looks of it, has lost all hope with teenage users. We see very few teens still using Facebook as most teens are on Instagram and Snapchat. Only 3 percent of Facebook’s users are teenagers with the majority of their demographic belonging to older generations. For Facebook to increase their number of teen users they will need to make a serious change. However, it is not as bad as it sounds since many of the teenage users they are losing are going to their very own Instagram.

Although Twitter is only 7 percent of teens favorite social media platform, they are still important to the teenage life. We see Twitter as a site that is typically not used every day but more of an impulse site when you need quick updates on a matter or when you want to see what is trending. Although Twitter isn’t the number one site for teens, they definitely provide a unique platform for the uses stated above.

In conclusion, Snapchat and Instagram are running the show, capturing the majority of teens. Twitter is not as essential and appeals to a smaller amount of users. Facebook has really slowed down and has become less and less popular to the ever-changing teenager. Understanding the teenager’s favorite platforms is important because they not only make up a huge part of society but they also provide insight into the future of social media.

Sources:

https://www.statista.com/statistics/187041/us-user-age-distribution-on-facebook/

https://www.statista.com/statistics/250172/social-network-usage-of-us-teens-and-young-adults/

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.

Where Will Twitter’s Stock Go From Here?

Twitter Stock Review(TWTR):

For years, Twitter has failed quarter after quarter to deliver profitability.  Recently, Twitter had its best quarter ever with a net income of 91 million dollars. Shocking the market, Twitter’s stock price has gone straight up since its successful earnings.  Additionally,  although Twitter’s revenue rose, its monthly active user base showed no growth. Twitter has shown great promise with its successful last quarter, however, there are still many issues surrounding the company. Let’s take a closer look at Twitter and what the future could hold.

Their Challenges:

At the moment, one of Twitter’s Problem is the number of fake or inactive accounts on its platform.  Many analysts downgrade the stock believing that many fake and or inactive users make up a large part of their user base. Also, many analysts believe Twitter is too similar to its behemoth competitor, Facebook. They believe that Twitter doesn’t have enough key differentiating factors and will eventually be crushed by Facebook.

The President’s Affect on Twitter:

If you follow politics, you know that The President Trump’s favorite way to reach the general public is through Twitter. He attracts many to the platform who otherwise would not of been on it. As a result, the President has brought publicity and new users to the platform.

Our View:

Although many see Twitter’s Short-term success as no indication of the future, we disagree.  

Twitter is already working on eliminating the inactive accounts that scared away many investors. Once these accounts have been eliminated, we don’t believe that this problem will have a significant or lasting effect on the platform. Additionally, we don’t believe the justification of this downgrade is fair because most other major social media platforms deal with or have dealt with similar issues.

From our recent experiences on Twitter, we have noticed an increase in ads throughout the platform. The company is clearly working to increase its ad revenue by finding new ways to increase the number of ads on the platform. This is great news as it shows advertisers are finding their advertisement campaigns on Twitter successful. However, if Twitter were to make ads even more frequent, the platform would begin to look spammy and tacky. Therefore, for Twitter to start making even more money(which it needs to – currently valued at 101 p/e) it will need to increase its daily and monthly active user base.

We see Twitter as an essential platform that will be here for the long run. Its platform separates it from other social media platforms such as Facebook and Instagram because it is THE PLACE for live news regarding any subject. If we want to see live updates of a sports game – we go to Twitter; If we want live news about a political topic – we go to Twitter; If we want weather updates – we go to our local weather man’s Twitter. The list goes on and on. We would never go to Facebook or Instagram to find these results, because people posting on Facebook and Instagram are mostly sharing special moments in their life, and not their opinion on a public news matter. That being said, some Facebook users do post about these topics, but generally speaking, Twitter has locked up that category. Therefore, because Twitter has a niche that is essential to social media and a strong demand for ads on their platform, we believe they have the potential to continue their success far into the future. 

Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.