Twitter's Future

 

Dear Reader,

Twitter, the short messaging social media company, is currently valued at 43.6 billion USD as evidenced by its New York Stock Exchange Listing.

I estimate Twitter is fairly valued for the next 3 to 5 years. Twitter has actually a lot of untapped value. Twitter has staked its future on video content, which is a mega trend, and a paid service according to various media sources.

Actually, I believe Twitter has to look for more ways to tap the in the moment news content on its network. Twitter is relatively much more popular outside the US in comparison with other leading social networks like Facebook and LinkedIn. Its audience is 70.4 % male which I think reflects the objective statistic that men consume and are more interested in news. Twitter is actually the best social network for news. All leading news anchors and reporters globally are on Twitter and often cite Twitter as their favorite social network. What is more, media staff share their posts usually first on Twitter and spend the most time on Twitter, compared to other social networks. Many revolutions around the world started on Twitter. I think this has to do with the short messaging format of Twitter. Writing short, but informative messages on Twitter takes less time, is more efficient, value creating and wealth and well being enhancing. The short messages in Twitter preserve the value of information, spread the word more quickly and are basically are a better media strategy.

So I believe Twitter has to firmly stake its future on monetizing the news content created by its users. Creating paid posts service is a good idea. People pay for products and services that save them time, effort and money. Twitter actually provides in many instances extremely valuable information and usually is the first source to report on a hot and breaking topic. People have throughout history paid a lot for the most valuable commodity - information. And Twitter should be able to convince people to pay for parts of its service. Yes, for now Facebook, LinkedIn and Twitter are free for users and paid for advertisers who value a lot the information about the social networks' users. 

Twitter, however, is a special case in that its news content created by its users is specialized, informative and timely. So Twitter's future looks bright.

If Twitter is able to monetize its news, I believe Twitter could be worth around 100 billion USD in the next 5 to 7 years.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich