Twitter Inc. might not be the most loved stock on Wall Street right now, but it is making strides that could make it one of the best performers in the future. Twitter’s live-video streaming app, Periscope has recorded yet another milestone as it signed up 10 million people in only four months.
Periscope has been off to a great start since its iOS app was launched in March and its Android version came out in May. The app reports that it now has almost two million daily active users who watch 40 years of broadcasts per day.
Periscope defines “Time Watched” as the aggregate amount of time that people spend watching live broadcasts on their mobile iOS and Android devices as opposed to desktop devices. In the blog post, Periscope said, “Time Watched is the metric we care about most, and what we’ll keep you updated…”
Jefferies sees online video ads As $17B/year opportunity
Analysts at Jefferies were one of the most vocal bulls after Twitter made a $100M bet on Periscope earlier this year. Jefferies believe that the long-term bullish view on Twitter is a function of its ability to monetize its video assets such as Periscope, Vine, and Native.
Jefferies believes that the online video ads market will be worth $17B per year in the next two years and they are tipping Twitter to be a big winner in the space. Part of the Jefferies report reads, “We believe [Twitter] is a leader in the crowded social media space and is particularly well-positioned to benefit from online video ad and mobile tailwinds.
Brain Pitz of Jefferies while speaking on the news that Periscope has reached 10M users said, “as the leading live-streaming video app,” Periscope will “benefit from the growing consumption of online video”. Going forward, Jefferies has a $56 price target on Twitter above the consensus estimate of $41.39.
Periscope outpaces Meerkat, watch out for Facebook “Live”
Periscope’s 10M sign up in four months might appear to be modest but it is quite significant in the live-streaming video space-which is relatively new. Meerkat, which is its main rival, recorded 700,000 signups in the first seven weeks after its launch in March and it announced its 2 million user base in May.
Meerkat has not given an update on its signups but it appears that Periscope already has the lead in the live-video streaming space. GlobalWebIndex reports that 1% of mobile internet users had the Periscope app in July as opposed to a 0.9% market share for Meerkat.
Meerkat might not pose seriously rivalry to Periscope but the same cannot be said of the “Live” mention app that Facebook launched for VIPs. Facebook has already signed up some big name VIPs to its live mention app who are indirectly working as brand ambassadors. Twitter’s Periscope needs to strengthen its position (and fast) before Facebook makes “Live” open to all its users.