Markets
DIS

Twitter (TWTR) to Join S&P 500, Restructures Live Video Team

TwitterTWTR is set to become part of S&P 500 on Jun 7.

Share price of the company rallied to a new 52-week high of $40.16, eventually closing a tad lower at $39.80 on Jun 5, following the news. Notably, shares of Twitter have gained 65.8% year to date, substantially outperforming the industry 's 15.5% rally.

Twitter's strategy to diversify from a mere micro blogging site to a destination for video and live streaming seems to be working in its favor.

The social media platform recently announced reorganization of its business structure by folding the live video unit into its content partnership team that will make it "easier to put together future deals."

Variety reported that with the move, the company is adopting a regional management structure instead of the earlier one, which was category (news, sports and live video) based.

Twitter's Video Push

Twitter has been focusing on "live" to turn around its fortunes. Live streaming has resulted in an increase in user engagement. The company streamed 1,300 live events last quarter and secured 30 new live partnerships.

At the Digital Content Newfronts in New York, Twitter announced more than 30 renewed and new deals for live and original programming.

Walt Disney Co. DIS will create Twitter-specific live sports, news and entertainment content from across its portfolio. Comcast Corp. CMCSA networks including NBCUniversal will be sharing live video and clips from NBC News, MSNBC, CNBC and Telemundo.

Moreover, Viacom's VIAB Comedy Central, MTV and BET, Hearst Magazines Digital Media, Will Packer Media, BuzzFeed News, and sports leagues including Major League Baseball and Major League Soccer are also included in the deal.

Twitter's fortunes are now tied to its video initiatives. In the last reported quarter, video ads accounted for the majority of total advertising revenues for the company. Strength in Video Website Cards, Video App Cards, In-Stream pre-roll and mid-roll ads continue to be the key growth drivers.

Moreover, video growth in Japan was attributed to surging international ad revenues, which is currently the key catalyst.

Twitter, Inc. Revenue (TTM)

Twitter, Inc. Revenue (TTM) | Twitter, Inc. Quote

Twitter currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Walt Disney Company (DIS): Free Stock Analysis Report

Viacom Inc. (VIAB): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

Comcast Corporation (CMCSA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

DIS TWTR CMCSA

Other Topics

Stocks

Latest Markets Videos