In his first major move as Twitter 's permanent CEO following Dick Costolo's resignation, co-founder Jack Dorsey took the wraps off of the company's "project lightning" Tuesday. In its product form, it's called Moments. But it holds on to its roots with a lightning icon in the Twitter app and on the Twitter desktop site. Here's what investors need to know.
Twitter's user growth has slowed recently. And the chart above doesn't fully capture the severity of Twitter's slowing user growth problem, since Q2 includes the company's SMS Fast Followers, which are very low value to the business. Excluding fast followers, Twitter's user base grew just 0.07% sequentially. Data for chart retrieved from respective quarterly SEC filings. Chart source: Author.
Moments, therefore, is a good start toward making Twitter more appealing to new users.
The next item for investors to keep an eye on will be the company's marketing campaign surrounding Moments. Part of Twitter's fresh strategy to begin appealing to the masses is an aggressive marketing campaign that will help more clearly communicate Twitter's value to the rest of the world.
"We will market that new way of using Twitter [i.e., Project Lightning] broadly through television and through digital video and other forms of our media to make sure that people are aware of a new way to use Twitter," said Twitter CFO Anthony Noto in a recent interview at Deutsche Bank's Technology Conference. "And when they get there, we hope they find it to be as easy as looking out of the window."
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The article Twitter, Inc.'s Project Lightning Debuts -- The Investor Takeaway originally appeared on Fool.com.
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