Twitter
TWTR
recently announced the acquisition of Squad, a screen-sharing social applicationthat facilitated screen-sharing on mobile or desktop and allowed users to video chat simultaneously.
The application was shut down on Dec 12, post the announcement, and is likely to be integrated with the core Twitter application.
Further, Twitter revealed that it will incorporate Squad’s employees inside its design, engineering and product departments. Squad’s CEO Esther Crawford will lead a product in the conversations space.
Per the data cited by the company, the Squad’s usage climbed 1,100% amid the coronavirus outbreak. Consequently, Twitter stands to benefit from higher engagement in the Squad platform and especially from its popularity among teenage girls.
Meanwhile, Twitter’s shares have surged 60.5% year to date compared with the Zacks
Internet – Software
industry’s growth of 103.9%.
Twitter, Inc. Price, Consensus and EPS Surprise
Increased Product Innovation Fuels User Engagement
Twitter is gaining massive traction due to the growing interaction concerning the news about coronavirus and its vaccine availability. This has made the social media platform more vulnerable to false news. However, Twitter continues to take several measures to contain the spread of misinformation.
During third-quarter 2020, the company started to experiment with a prompt that encouraged people to read an article from other websites before retweeting them. This innovation has helped the company contain the spread of false news by educating the readers about a topic, thereby fostering thoughtful discussions on its platform. People now open the articles 33% more often before retweeting them.
Additionally, this Zacks Rank #3 (Hold) company’s efforts to identify and remove abusive content on time are a major positive. Further, the company continues to remove fake accounts and pages to make the platform more secure and trustworthy. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Further, in November, Twitter launched the Fleets feature for iOS and Android users worldwide. Once posted, Fleets can be viewed for 24 hours before they disappear, so other users can no longer access them.
Much like
Snap
’s
SNAP
Snapchat model,
Facebook
FB
Instagram’s stories feature and
Alphabet’s
GOOGL
YouTube, LinkedIn and WhatsApp’s status feature, Twitter’s Fleets is directed toward gaining popularity among social media users who are more interested to post short-lived text, photos or videos.
Moreover, in September, Twitter partnered with WebMD to bring more WebMD content to its platform with video content and Twitter Moments. With this partnership, the company aims to educate the consumers on health topics, including live examples from patients on how to manage chronic conditions and other health issues.
Markedly, in third-quarter 2020, the company’s monetizable daily average users (mDAU) rose 1 million sequentially and grew 29% year over year, to 187 million. The performance was primarily driven by increased conversations on the platform concerning current global events as well as elevated product improvements.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it’s predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.
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