Twitter has been having a rough time in the market as of late. However, on Thursday, the stock started to head upward to close the year off on a good note. Now, the big question is, “Will gains continue?” Today, we'll talk about why Twitter started heading in the upward direction, whether or not gains are likely to continue and how binary options traders can trade the trends.
Why Twitter Started Heading In The Positive Direction
Twitter's biggest problem to date has been user experience. Because the user experience in the social network isn't very strong, the company has struggled with bringing in new users and retaining them as regular users on their network. On Thursday, Twitter announced that it is releasing an app update that should improve the user experience for Mac computer users. The app allows mac users to take advantage of the most requested Twitter features in an environment that is more elegant, following the mac touch. The update on the app makes it so that the app now supports GIFs, allows the muting of specific accounts, gives users the ability to quote tweets, offers inline video playback, allows group direct messaging, provides a today center widget and comes with a darker, more elegant theme. In a recent statement, here's what Twitter had to say about the update…
“We've built in some of the most-requested features so your Twitter for Mac experience combines what you love about Twitter with the elegance you expect on a Mac…”
As a result of the news, Twitter's stock climbed by 4% on Thursday. Now, the real question is whether or not the gains will continue?
Will The Gains Continue?
In my opinion, the answer is no. While the new app update is a move in the right direction, Twitter is going to need to do far more in order to see long term progress on their stock. The reality is that there's simply too much going against the company right now. Two of the biggest issues include…
User Growth – Twitter's user growth is horrible, and while the update may help with regard to Mac users, I simply don't believe that it's going to be enough to make any real difference in their user stats. First off, the Mac population is relatively small compared to the overall population of computer users. Also, while the app update does make Twitter better, in order for users to want to get involved in the app, they're going to need to want to become members. Therefore, before user growth will climb, I believe that we need to see major updates to the company's actual website, not just apps.
Management – For me, management is a major concern. At the moment, Jack Dorsey is the CEO of the company. For those of you who don't remember, Dorsey held this role years ago and did a horrible job. He was focused on activities like drawing and simply didn't provide enough focus to the job at hand. Now, Dorsey is the CEO of two publicly traded companies; one which just recently hit the market and the other which is struggling. Unfortunately, this is simply too much for one person to manage. With that said, I'm not expecting to see any long term gains until a more capable CEO is found.
How Binary Options Traders Can Turn The Trends Into Profits
When the market opens on Monday, I'm expecting to see declines on the stock. From there, we will likely see the same downward movement as we've been seeing for quite some time. With that said, binary options traders should be watching for put option opportunities in order to ride the trends down to the bottom. Keep an eye on the worldwide 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 Marketing Land]