) 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
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
Twitter's ability to attract advertising revenues, despite
significant competition from Facebook (
), Weibo, Yahoo (
) and market leader, Google (
), will be a key factor determining its growth. However, higher
operating costs are expected to hurt profitability in the near
Currently, Twitter has a Zacks Rank #3 (Hold).
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