) recently appointed former
) executive, Katie Stanton the new Global Media Chief of the
company. Katie Stanton is replacing Chloe Sladden, who had left the
services of the online messaging service amid the recent management
reshuffle. However, no reason was given for her departure.
The developments follow the resignation of Twitter's Chief
Operating Officer, Ali Rowghani in Jun, 2014. We believe that these
executive changes are the result of the slowdown in Twitter's user
Stanton had joined Google in 2003 and served as the Product Manager
of Google Finance. She was one of the first Googlers to join the
Obama Administration, as the Director of Citizen Participation, in
which she helped develop online tools that help Americans to get
more involved with the White House.
In Jan, 2010 Stanton moved to the State Department as the Special
Adviser to the Office of Innovation, where she worked on projects
related to Twitter. She has been serving as Twitter's Head of
International Strategy since July, 2010.
Since Stanton has been associated with the top executives of
Twitter for such a long time, she is well acquainted with the
fundamentals of the company. The company expects that with Stanton
onboard, it will be able to revive the slowdown in its user growth.
Moreover, Twitter also hopes to encash Stanton's strong public
Moreover, as the Head of International Strategy, she had to look
after Twitter's relationships with foreign media companies
including the likes of BBC and Brazil's Globo. Hence, it is
believed that the new role will not be very pressing on Stanton and
she will be able to deliver the goods.
Of late, Twitter has gained popularity as a medium for promoting
the content of various media companies and Stanton's new role will
require her to oversee the various endeavors of Twitter aimed at
the promotional activities. These, in turn will help the company in
fetching greater volume of ad revenue going forward.
We believe that new products and services will be major growth
drivers for Twitter in the long run. As spending on online
advertising is expected to increase manifold compared to
traditional media, we believe that Twitter has massive growth
opportunity owing to its strong mobile products. International
expansion and accretive acquisitions are other significant
Twitter's ability to attract advertising revenues, despite
significant competition from
) and market leader, Google, will be a key factor determining its
growth. However, higher operating costs are expected to hurt
profitability in the near term.
Currently, Twitter has a Zacks Rank #4 (Sell).
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