Twitter Inc (NYSE:TWTR) has become a laughing stock lately and the stock is struggling to find its bearing among tech stocks and on Wall Street. In fact, Twitter has practically become a joke and just yesterday, news broke that some investors and traders are playing games with Twitter on Twitter. In fact, tech analysts are starting to consider the possibility that Twitter might die if Jack Dorsey can’t find a way to plug the leaks in the sinking ship.
Twitter is the perfect example of a sinking ship as it continues to face headwinds across the board. Its user base has stagnated and the firm can’t seem to find a good enough way to monetize its current user base. More so, user growth has become alien to the firm and it doesn’t seem as if the firm will add new users any time soon. In fact, the shares of Twitter have crashed by more than 58% in the last one year and the stock has plummeted by more than 28.45% in the year-to-date period.
Twitter might be reaching the end of its lifespan
Bob O’Donnell, founder and chief analyst of Technalysis Research LLC writes in Tech Pinions that Twitter might be reaching the end of its lifespan. O’Donnell says it is no longer unthinkable that Twitter might cease to exist in the form in which we’ve come to know it. Many people in the tech industry might find it hard to imagine a situation in which Twitter dies but the existential threat facing Twitter is not lost on the folks on Wall Street.
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Earlier this week, Scott Devitt, an analyst at Stifel downgraded the stock from a ‘hold’ to ‘sell’ in a recent note. He noted that Twitter has 320M monthly active users (MAU), which pales in comparison to the MAUs of other tech firms in the same age group as Twitter. Twitter’s user base even pales in comparison to the user number of new entrants such as Snapchat and Instragram.
Deviit goes ahead to say, “Twitter is a product that has never fully developed into a sustainable public company due to either poor strategy, poor execution, or that it was never destined to be one… We are returning our rating on Twitter shares back to where it should have been all along — Sell,”
GIFs to Twitter’s rescue
It appears that Jack Dorsey and the product team at Twitter don’t want to give up on the stock and its seems that GIFs might be the next weapon of choice in Twitter’s defense arsenal. The Verge reports that Twitter is now testing a new button on its mobile app for posting GIFs. Some Twitter users said that clicking the GIF button on the mobile app showed them a selection of ready-made GIFs, including some categorized by mood and others that were trending.
Twitter Inc (NYSE:TWTR) hasn’t officially confirmed or denied its plan for GIFs but GIFs could be a smart way for Jack Dorsey to spice up content on the platform. GIFs has consistent remained a trendy form of content in the age of social media and it could allow the firm make more money from the brands on its platform through sponsored GIFs. It remains to be seen though, if GIFs will bring new users to Twitter and if the brands on the platform will pay to tweet GIFs to their followers.