Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Twitter Inc (TWTR)’s Game Changer New Feature Is Smart, Convenient, Profitable, But Not Impressive

Twitter Inc (NYSE:TWTR) isn’t looking good year to date, almost 24% is a hard fall to approximately $48.5, but the blue bird can still fly its way out. The secret is in the new feature that will allow purchases within the platform’s borders through a ‘Buy Now’ button integrated in tweets. B2C informed that this could have a significant impact on how Twitter Inc (NYSE:TWTR) is perceived by advertisers.

Twitter Inc (TWTR), NYSE:TWTR

This idea is presented as a fine creation of business logic. Through the new capability, the social platform will be able to attract more advertisers while developing possibilities to get even better deals. Moreover, this strategy will work neatly with Twitter Inc (NYSE:TWTR)’s approximately 211 million Mobile Monthly Active Users that will realize the sweet convenience of socializing and shopping at the same time. Hopefully, this project will not be short lived because Facebook Inc (NASDAQ:FB) is implementing an identical button on its platform.

Twitter Inc (NYSE:TWTR) made $277 million in revenues, an increase of 129% year-over-year, and 81% of them from mobile devices. So, it’s true that the social platform will see good figures at the end of the quarters, but these kinds of decisions aren’t meant for longer-terms. There is little hope that Alibaba Group Holding Ltd (NYSE:BABA) will be a less attractive platform on which to advertise and Facebook Inc (NASDAQ:FB) a less happening place in terms of consumer base. That’s why Twitter Inc (NYSE:TWTR) will face certain difficulties in actually reaping the benefits coming from their latest improvement. Generally, such simple ideas don’t prove to be actual game-changers, there has to be something working as a back-up. For example, Apple Inc. (NASDAQ:AAPL)’s new payment system has technological homologues already in the market. However, it won because of Touch ID technology that made it one of the safest payment platforms ever developed.

It will be quite disappointing if an almost $30 billion company cannot come up with a better idea than just a new ‘Buy Now’ button.

Disclosure: none
Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Loading...