Twitter Inc (TWTR)’s Algorithm Change Can Disrupt Its Business?

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Twitter is struggling with its user growth, but experts think that there is still a light at the end of the tunnel for the blue bird.

Twitter Inc (NYSE:TWTR) has announced its quarterly earnings and there are mixed results because the user growth is still sloppy, earnings are good, but revenues have missed the analysts’ expectations by huge margins. In a program on CNBC, Ronald Josey, JMP Securities said that there is a disruption in Twitter’s core business. The earnings report came late because Twitter Inc (NYSE:TWTR) is still revamping its ads business, strategies and its working relationship with advertisers. Josey said that Twitter Inc (NYSE:TWTR) still needs a lot of innovation for the user growth. Twitter Inc (NYSE:TWTR) is gearing up for an algorithm change. A number of users have reported the bad Twitter algorithms which don’t show the exact news feeds and updates from the sources the user is following. Josey said that Twitter Inc (NYSE:TWTR) stock is down because of the fear of unknowns before this major algorithm change.

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Twitter Inc (NYSE:TWTR)’s change in news feeds and algorithms can disrupt small businesses. That’s why the,advertisers are a bit skeptical about the company for now. The source said that advertisers want to pay for quality ads and avoid quantity which doesn’t pay off. Twitter Inc (NYSE:TWTR) could increase the ads cost and ultimately bulge up its ads revenue, but first, it will have to prove its reach and results.

Twitter Inc (NYSE:TWTR)’s quarter is still better than before. Josey thinks that it’s still too early to speculate anything about Twitter’ overall shape in the ads business. Twitter Inc (NYSE:TWTR) is also working on a new, robust ads tool to help advertisers target more users for sales.

  John Thaler’s JAT Capital Management owns over 7.3 million shares in Twitter Inc (NYSE:TWTR).

 

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