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Twitter Inc (TWTR) TV Ad Impossible to Follow, Just Like Twitter

Twitter Inc (TWTR)

Twitter Inc has come up with a new TV ad that tries to sums up the firms service. But like the features on the social network, very few regular people have the ability to understand the ad, says a report from Re/code.

Twitter ad too complicated

Twitter must have paid a big amount of money for a 30-second spot during the World Series on Fox for two consecutive nights to show off to the massive American audience its new feature – Moments. Twitter does not opt for TV ads too often, so it is a rare move for the firm.

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Twitter’s sluggish user growth is a matter of concern for the investors and the firm. Previously, Twitter CEO, Jack Dorsey, said the products need to be simplified so that new users start using it. With the new ad, the firm will be aiming to achieve something similar i.e. explaining its platform to all.

But, in reality, this new ad from Twitter “is just like Twitter: full of images and video clips and text that may be hard for non-Twitter users to parse,” Re/code says. The ad dubbed ‘Post Season’ features baseball content that has been taken directly from Twitter itself. It says ‘We Have cool Content,’ but the way its been put makes it really tough to understand.

The ad has a lot of clips that include actual text from user tweets, but the commercial is too fast as it jumps too quickly from tweet to tweet, making it almost impossible to read the clips. Only people who regularly access Twitter Inc can actually relate with the ad since it is just like Twitter, a “hodgepodge of multimedia” content that hardly fits together, but does entertain the users.

Analysts turn bearish

Meanwhile, Twitter’s stock saw the worst intraday decline on Wednesday since late August. The firm’s Q4 outlook disappointment investors leading to a drop in the stock. On Tuesday, the firm reported soft user growth in the last quarter.

Following the earnings report, 18 analysts followed by FactSet lowered their price targets on the stock. Shyam Patil, an analyst at Susquehanna. wrote “[Twitter] did little to answer longer-term fundamental concerns around user growth and engagement…and 4Q guidance raised additional questions around the growth rate for the [owned and operated] business and [long-term] margin profile.”

Twitter Inc now has an average price target of $34.76 based on 43 analysts FactSet tracks.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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