Twitter Inc (NYSE: TWTR)
Twitter closed off yet another incredible day in the market today, and for good reason. At the end of the day, investors are excited about what the company is doing with regard to streaming video. In fact, a few analysts are putting quite a bit of hope into the company’s relationship with the NFL. Today, we’ll talk about that relationship, what we saw from the stock today, and what I’m expecting to see from TWTR moving forward.
TWTR Gets In Bed With Big Sports Franchises
Twitter has been struggling with user growth for some time now, we all know that, it’s no secret. As a result, the company had to come up with some way to get users involved in their services yet again. The big idea the company came up with… streaming videos.
Over the past several months, TWTR has put together a master plan that revolves around streaming sports events. While everyone seems to be focusing on the relationship with the NFL, this isn’t the only sports content provider that the company has signed on with. We’ve also seen deals with MLB, NHL, and several other content providers in the sports sector.
The plan is to stream events from these major sports networks. The company has been in talks with Apple to get the TWTR streaming app on Apple TV. At the end of the day, the company is doing everything it can to take advantage of this idea. Ultimately, they are hoping that the sports events will drive users to Twitter, causing them to create accounts, and become active on the social network.
What We Saw From The Stock Today
Since Twitter made the announcement that it was going to be putting a big focus on streaming entertainment, we’ve seen gains in the value of the stock, for the most part. At the end of the day, it seems like investors are happy to see that the company is finally doing something to appeal to a larger audience. Today, the gains we’ve seen on the stock recently continue. By the end of the trading session, the stock closed at $19.11 per share after a gain of $0.81 per share or 4.43%. In after hours trading, the stock is trading at $19.29 per share after a gain of 0.94% thus far.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bearish opinion of what we can expect to see from TWTR. First and foremost, I would like to say that I’m happy to see that the company is finally doing something to appeal to new users. However, I feel as though the efforts really are too little too late. At the end of the day, the overwhelming consumer opinion of TWTR is that the company has a social network that’s hard to use and understand with very little to offer. In order to try and bring new users in, the company is looking toward streaming video. After all, YouTube, Amazon, and several others are already massively successful in this area. Then again, that creates an issue in and of itself doesn’t it? In order to cure their blues, Twitter has decided to step into an incredibly saturated market. In order to become a major player in this market, the company is going to have to shell out massive amounts of money… and still be lucky. All in all, while the stock may rise further in the short run, the long run picture on the stock really isn’t looking good.
What Do You Think?
Where do you think TWTR is headed moving forward? Join the discussion in the comments below!