Twitter Inc has much to look forward to. The company’s stock has been heading downhill for some time now and recently dropped beneath its initial public offering price. Despite this, analysts say that things are looking up for twitter.
Analyst Peck becomes Twitter fan
SunTrust Analyst Robert Peck had good things to say about Twitter’s share stock on Monday. He listed a few catalysts that should make the company a great investment. Among these boosters is the upcoming launch of various twitter products. The formation of new and formidable ties is said to be another driving force, as well as the upcoming takeover of the new CEO.
Twitter is said to be working on some new products that will make the platform more engaging. The company hopes to increase its declining user base. Its inability to effectively draw in new mainstream users has been a point of criticism in the past. Stats show that Twitter scores an impressive 95% in regards to its brand awareness, but a mere 30% for its user acquisition.
Users can expect the launch of “Project Lightning” this October. This is a venture that is said will allow Twitter to translate itself much more effectively among its users. Project Lightning will promote popular tweets and other Twitter content.
There has been talks of a possible “buy button” being introduced. This would be made possible by Google’s DoubleClick component and will allow users to buy items and services directly on the platform.
By partnering with Google, users will soon see tweet posts showing up in search results. Newsworthy tweets and content relating to trending events will gain more exposure. Pending partnerships with the likes of Yahoo, ESPN, The New York Times and Flipboard are reflective of how the company intends to keep itself relevant.
Twitter still in the market for new leadership
Peck predicts the company’s new leadership will be great motivation for new investors. Co-founder Jack Dorsey now serves as the company’s interim CEO. Dick Costolo announced that he will be giving up the post earlier this year. The interim will continue as lead until they’ve settled on a suitable new head.
The company might announce its new CEO around Labour Day. He listed Dorsey as the company’s likely new head along with co-founder Ev Williams (CEO of Medium) and Adam Bain. However, Twitter will only see a modest increase in monthly users, Peck says. He believes it would see more growth if it capitalised on its existing users.
Though the company holds great investment potential, Peck thinks that Twitter’s ability to overcome its downfall relies mostly on its ability to boost its stagnant growth and its new leadership.
Twitter holds great investment potential, says Peck. Its ability to overcome its struggles relies mostly on how it boosts chooses to boost its stagnant growth and its new leadership.