Twitter’s recent initiative towards streaming service hints its intention towards new opportunities
Twitter Inc (NYSE:TWTR) has lately been in the limelight as it seeks to revive itself by diversifying offerings. Last month, the company announced its turn towards the VR world, as recently, the short-messaging app has also started streaming sports event in an attempt to gain traction from the users. As the company seeks new opportunities, there is also an increase in interest by the investors as they have been active in taking fresh positions lately.
Earlier in March, CEO Jack Dorsey suggested that it is high time for the company to change itself and look for new opportunities. He also reckoned the possibility that his company would go for Virtual Reality as a preference. However, it was clear that Twitter needed an acquisition to mark its presence; therefore, it acquired Magic Pony technologies last month. Yesterday, the company showed a glimpse of its future when it tested a live-stream of Wimbledon tennis, which showed its intention to be the Netflix for sporting events. Twitter is in talks with NBA and other sports bodies to get rights to cover events.
A positive outlook can be seen on the investor side too. The Country Caller also published an article in mid-June, in which we discussed the possibility of a new 52-week low level for Twitter. However, the recent developments have urged it to take long position and the stock has risen more than 20% since then. Street houses, such as SunTrust Banks and MKM Partners, have also recommended investors to buy and hold the stock as they feel that it has a significant potential. If Twitter can make its presence in the streaming business, there is a good chance for it to revive itself and come out as a profitable and stronger player in the media industry.