Twitter Inc (NYSE:TWTR) Announced a Few Changes, Will it Cool Down the Investors?

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By Stefan Larson on November 13, 2014 Social Media

Twitter Inc (NYSE:TWTR) wants to introduce some new features to its platform very soon. The changes that the company wants to incorporate will make the video sharing process easier and efficient. Moreover, it will be easier for users to get in contact with their friends and acquaintances privately. Twitter also plans to initiate a feed expansion project, which will make sure that users do not miss their important notifications while they are not online.

Twitter Inc (NYSE:TWTR) announced these changes on November 12, 2014 when the company was celebrating its first Analysts Day ever. The stocks of the company spiked up when the news reached the market.

These announcements were made in an attempt to silence the investors and traders’ criticism over the company’s low growth margins; traders were of the opinion that Twitter, unlike PinInterest and Facebook, was unable to attract news users and keep the old ones.

According to Michael Santoli, the Senior Columnist at Yahoo Finance, the latest announced made by the company has cooled down the investors on the Analysts Day. However, he further said that the investors are still not very clear about the outlook and new features that the platform intends to incorporate, and hence they are not sure as to whether to invest more in the company or not.

We will have to wait for a while in order for the company to fully reveal its plan.

Robert Peck, an analyst at SunTrust, gave the event a score of A- mainly due to the fact that the company answered investors’ queries and addressed their concerns

Twitter Inc (NYSE:TWTR) announced that it has around 248 million MAUs (Monthly Active Users), who post around 500 million tweets each day. The investors, however, felt that the company needed to move away from its group texting model, as they believed that group model was one of the reasons why the platform was not gaining any new users.

The company plans to make the sign up process easier and efficient in order to get more and more new users. The new users will be given an option of ‘Instant Timeline’ at the time of sign up where they can choose from a number of different categories, including technology, television and sports. Twitter also wants to organize a demo/ tutorial for the new users in order to better equip them with the service.

The Wall Street Journal recently announced that Dick Costolo, the chief executive officer of Twitter, was under great pressure, for the big investors are planning to abandon the company. Perhaps this was one of the reasons why the social networking site decided to bring some flavor into its existing outlook.

As far as the shares’ prices of Twitter Inc (NYSE:TWTR) go, the company has been trading in the range of $40.92 to $43.95, with a 52 week range of $29.51 to $74.73. Its EPS (earnings per share) is going in a negative right now; the figures stand at -2.17.