Twitter Revamps Signup Process to Attract New Users - Analyst Blog

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Twitter Inc. ( TWTR ) recently revamped its sign-up process in an effort to attract more users. The redesign comes after a gap of three years and is intended to simplify the signup process, which users have found difficult to comprehend.

Per the new layout, upon signup, Twitter will ask new users to identify their respective interests from a list of options including photography, fashion, entertainment, news and popular accounts. Based on these choices, users will be offered suggestions by Twitter.

Moreover, new users can now even view sample tweets from the suggested accounts before they finally decide to follow them. However, the new layout lies does not provide an alternative list of accounts if the first list proves irrelevant.

Twitter operates in an industry where continuous user growth plays a very important role. The company endeavors to offer new products and services to lure more users. The company has been putting efforts to improve its profile pages, thus making them more engaging and visually appealing to all those who visit the site, whether they are logged-in or not.

Twitter's efforts seemed to have paid off as in the recently concluded second quarter, the company reported an active user base of 271 million, which increased 6.3% sequentially.

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 positives.

Twitter's ability to attract advertising revenues, despite significant competition from Facebook ( FB ), Weibo, Yahoo ( YHOO ) and market leader, Google ( GOOGL ), 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 #3 (Hold).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: TWTR , YHOO , FB , GOOGL

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