Twitter Shares Soar on Analysts Day (TWTR)

Shares of the internet company Twitter rose nearly 9% today

Twitter Inc (NYSE:TWTR) showed us several plans today at its analyst day that have reignited the stock and sent it to some new highs.  The main takeaway from the analysts day was management addressing their user growth problems – probably the main concern for investors.  The user growth problem has concerned investors since the very first earnings report from Twitter.

Twitter Plans To Launch an Instant Timeline

Twitter revealed a plan to release a new feature dubbed “Instant Timeline” which will help new users get acquainted to the site and be presented with interesting content even if they have not followed anyone.  The goal of Twitter Instant Timeline is to build a feed of tweets the user will find interesting and build engagement from the beginning.

This will solve an issue Twitter has been facing which is they have tons of impressions from non-logged-in users.  Twitter needs to get these users engaged and logged-in in order to provide value.

Twitter Plans To Improve Messaging Feature

As a current user of Twitter, I definitely find the messaging feature difficult and cumbersome to use.  Twitter said that it plans to make its messaging features more functional and easier to use moving forward.  Facebook’s messaging system has nearly replaced email for communication between friends – Twitter needs to follow suit if they want to remain competitive.

Twitter also plans to add “private tweets” and new functionality to make sending direct messages easier via a button on an existing tweet.

Twitter Will Attempt To Monetize Logged-Out Users

It is no secret that Twitter has many more logged out users viewing tweets than logged-in users.  Twitter estimates nearly 500 million people see tweets but are logged out when they read them.  The strategy here was not to clear as Costolo wants to give logged-out users more tweets to make the platform more valuable to them – convincing them to register at the site. Seems a tad vague to me!

The Bottom Line on Twitter’s Analyst Day

Twitter definitely told the Analysts what they wanted to hear, but until we see a change in management at the top, execution on the changes is another story.  For now, I’m going to be watching this one from the sidelines as I’m not entirely confident at the moment.