Twitter Inc (NYSE: TWTR)
It’s no secret that Twitter has been spiraling out of control over the past year or so. The company simply couldn’t seem to put things together to drive growth. The biggest problem it has faced is user stats. After all, without users, an online company has absolutely nothing. As a result of the user growth issue, Dick Costolo resigned last year and Jack Dorsey took his place. Now, Dorsey is making changes to the company’s operations. Now the big question is, “Will the changes Jack Dorsey is making lead to positive movement in the market?” Today, we’ll talk about two big moves the company seems to be making and whether or not they will work out for TWTR in the long run.
Twitter Invests In Physical Goods
In the past, Twitter has always focused on software. Ultimately, their social network was the king of their pins. However, as other companies in the sector like Facebook, Google, and more start to invest in physical goods, TWTR is making an attempt at doing the same. In some of the most recent news, Twitter has made a large investment in a company called Muzik, which is a company that focuses on making headphones.
I know, you may be thinking, “How are headphones going to save a social media company?” This is where things get interesting. Muzik doesn’t just make your standard headphones. Instead, their headphones have buttons on the outside of them that allow users to clip music and automatically send the music clips to social media. The interactive properties of the headphones are likely to lead to decent sales volume, and TWTR plans on taking a decent sized piece of the pie.
Nonetheless, there is a bit of a hurdle in the process at the moment. Streaming music services know that consumers like to share with other consumers. As a result, Spotify and Apple Music have already set up clip and share functions. This will prove to add a high level of competition to Muzik right out of the gate, and could be bad news for TWTR.
TWTR May Do Away With Character Limits In Tweets
When a social network that’s as big as Twitter has a problem with user growth, it’s clear that user experience is the issue. As a result, TWTR is kicking around ideas that will allow them to improve the user experience associated with their social network. One idea that’s been popping up in stories lately is the concept of removing character limitations on Tweets. That’s right, Twitter may go from being a micro-blogging social outlet to a full fledged social network with no character limitations.
Now Here’s The Big Question?
Will these changes be enough to save TWTR from becoming another sinking ship in the world of social media? This is a hard question to answer. The reality is that Twitter’s user experience simply isn’t what it should be, and while increasing character limits is a step in the right direction, it’s not likely to be enough. Twitter needs to go through a complete design overhaul. When it comes to Muzik, it seems to be a smart investment from the outside looking in. However, considering that streaming music services are already adding a clip and share feature to their service, Muzik headphones may become obsolete before they even make it off of the ground. All in all, TWTR is still in trouble. The company might be moving in the right direction, but it is nowhere near a point of sustainable growth. With that said, I still wouldn’t invest my money into the stock and wouldn’t advise anyone else to!
What Do You Think?
Where do you think TWTR is headed and why? Let us know your opinion in the comments below!
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