Twitter has fallen on some serious hard times this year. Unfortunately, growth in the stock simply seems to be nonexistent. Well, that is until today. Currently (12:37), the stock is trading at $25.89 after a gain of 6.46%. The reason Twitter is gaining is simple. The company is testing a new opportunity for its advertisers. Is This what Twitter needs in order to see long term growth? What's likely to happen next? How can binary options traders take advantage of the trends? We'll answer all of those questions today!

Twitter's Focus Is Far Off The Mark

Twitter's problems started in late 2014. The problem is pretty cut and dry. Twitter can't seem to drive new users into the network and keep them as active users. As a result, Dick Costolo resigned as CEO of the company and Jack Dorsey took his position. However, this hasn't worked to solve the problem either. In fact, under Jack Dorsey's leadership, Twitter seems to be more focused on advertisers than ever before while leaving out a key point… user experience is important. This is clear with the most recent move the company has made.

The most recent move that Twitter has made is absolutely horrible for user experience. The company is currently testing ads targeting logged out users. How are they doing it? They're attempting to send ads to users' desktops! As an online consumer, I absolutely hate to see websites that are heavily monetized… it's annoying! The last thing I would want to do is sign up for a social network that's going to show me advertisements even when I'm not logged in by pushing them to my desktop!

While this plan is likely to boost advertising revenue in the short term, it's absolutely absurd when you consider the problem the company faces with regard to users. Users don't like to see too many ads, how do you think they are going to react to ads being pushed to their desktop. In my opinion, this is going to do more to drive users away, making Twitter's problems even worse!

How Investors Are Reacting To The News

For now, Twitter investors seem to love the idea. The stock is up, and in a big way. Currently (1:03), Twitter is trading at $25.87 after a gain of 6.42%.

What We Can Expect To See Moving Forward

While Twitter's investors are showing their support for the plan at the moment, I don't believe that the support is going to last very long. The reality is that the company needs to get user growth under control. With that said, we can expect to see gains in the short term, but in the long term, declines are on their way.

How Binary Options Traders Can Take Advantage Of The Trends

This is an interesting one because we're seeing solid movement now, but a reversal is likely to come. With that said, binary options traders should be watching the stock for call option opportunities to take advantage of the short term upward trends. However, they should also be watching for the reversal that is all but guaranteed. So, while trading calls to take advantage of the short term uptrends, watch for the reversal. When it starts, shift the strategy to puts to follow the resulting downtrends to the profits. Keep an eye on the latest financial news.

What Do You Think?

Where do you think Twitter is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Flickr]