Can Twitter (TWTR) Regain Strength In The Market?

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Twitter Inc (NYSE: TWTR)

If you’ve been following Twitter, you know that they’ve been having some serious problems lately. For some reason, they simply can’t seem to bring new users in and retain them as regular users. As a result, investors have been pressuring the current CEO, Dick Costolo to resign. So, sure enough, investors got what they wanted and late last week, Costolo announced his resignation. Now, the big question is, “Under new guidance, will TWTR be able to regain strength?” Today, we’ll take a look at what’s causing the issue, what has been done to solve the issue so far, and what we can expect to see from TWTR moving forward. So, let’s get right to it…

The Biggest Problem TWTR Has Faced

As a business owner myself, I know the importance of planning. I plan my days, weeks, months and years in an effort to maintain growth and make my investors happy. However, this seems to be the biggest issue. While Twitter hasn’t come out and said, “We are working on better planning.” I really think they need to. The reason that’s my opinion is that by watching TWTR over the past few quarters, they have come up with solution after solution. However, there is no plan for these solutions to intermingle. When one solution doesn’t work, the company scraps it and moves onto the next instead of planning to tweak things as they go and combining solutions for better effectiveness. With that said, I’m hoping that whoever takes over the reigns at Twitter is plan oriented and willing to make tweaks to solutions in order to stay on track with their plans.

Solutions We’ve Seen From Twitter In The Past

There’s no doubt that Twitter has indeed made an effort to pick up user data; and if the company stuck with one solution and worked on making it work well, it probably wouldn’t be in this boat today. For example…

  • Firehose Feed – Earlier in the year, Twitter opened their Firehose feed back up to Google in hopes that their results would show more in Google searches. However, as both a TWTR and a GOOG user, I have to say that I haven’t seen a change in the amount of Twitter results I see in search. However, instead of working with Google to improve the strategy and stay on track with the plan, Twitter simply moved on to the next way they think they can solve the issue…
  • Allowing Unregistered Users To See Posts – In the past, in order to see Twitter posts, users would need to be registered and logged in. However, the company recently made a change that allows users to see streams without logging in; in hopes that this would cause more users to sign up and respond to the tweets they see in the stream. While there hasn’t been much data from this change; I believe that this will actually have an adverse effect. If users can see the data without signing in; most will have all they need without becoming members. However, if the company would have worked on the Google Firehose Feed deal, and kept the block, more users would have signed up to see the data; so, I’m not expecting to see much positive news out of this change.

This is the path that Twitter has been following for some time now. Instead of focusing on what seems to be the most viable solution, the company jumps around like the Easter bunny on Easter eve.

What Twitter Needs Now

As mentioned above, what Twitter really needs is a plan. The team at TWTR needs to sit down and look back to what was going on when the social network was driving more users; and CREATE A PLAN to replicate their earlier success. If this doesn’t happen, we’re likely to see the stock continue to tank!

What Do You Think?

Will Twitter be able to turn things around? Do you agree that the company needs better planning and execution? Let us know your opinion below!

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