Twitter Inc (NYSE:TWTR) share price has been brought down some 21.2% year to date to the value of approximately $49.3, so there are signs that investors are losing faith in the company. The Guardian dedicated an article to the social platform that analyzed some monetization strategies that Twitter Inc (NYSE:TWTR) can pursue in order to reap higher profits. It can provide news services to customers due to the large number of executives active on the site, however legal concerns work as a setback for this strategy.
Twitter Inc (NYSE:TWTR)’s 271 million monthly users can make an impressive consumer base for a media provider, but this venture into journalism will bring legal responsibility towards every single tweet on the website. Most probably, the company’s management is reluctant at best in adopting such a business strategy for the future. Besides, somebody must have brought up the idea of publishing news instead of just hosting them through the platform and it didn’t go through as we can see it. Now, a possible reason is the fact that Twitter Inc (NYSE:TWTR) would have to reinvent itself into media from programming.
So far the company has been practically free-riding on the most active users that are usually celebrities, sports stars, politicians, and top level executives. This made the platform seem bigger than it actually is, so it’s currently just stuck with little possibility to expand the core activities or to invent something new. The best monetization strategy pursued by the company is the ‘Buy Button’ that would allow any user to purchase a product featured in a tweet. This promises to boost Twitter Inc (NYSE:TWTR)’s revenue especially since the release is planned to precede the holiday season, but the scale is unknown as Facebook Inc (NASDAQ:FB) plans to release a similar feature on its own platform.
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