Twitter is a great social network, and a massive company, there's no denying that. However, for some reason, the company can't seem to drive the mass amounts of new users to the platform that it used to be known for. With dwindling user data, TWTR seems to be close to a plateau. As a result, they've tried several things from opening the Firehose feed to Google to allowing non-members to see streams. However, nothing seems to have worked so far; leading to pressure from investors and a CEO resignation. Now, the company has made another move to combat the problem…
Twitter Acquired Whetlab
Whetlab is a start up company that focuses on machine learning; and today, Twitter announced that they have acquired the company. While the amount of money Twitter paid for the acquisition was undisclosed, the reasoning was laid out on a silver platter. Twitter hopes to use Whetlab technology in an effort to better organize their data. As a result, users should have a better experience; ultimately leading to growth in both users added and user retention.
Will Whetlab Really Help Twitter Solve Its Problems?
Personally, I don't think that the Whetlab acquisition is going to be the end all solution that Twitter wants it to be. The reality is that Twitter needs big changes made to management. While the company's CEO has stepped down, a new CEO that's well qualified needs to take the reigns before I would be comfortable saying that we are likely to see long term growth. The problem with Twitter is that they don't seem to have a plan; and if they do have one, they're not set on following through. This becomes apparent when we look at the several attempts they've made to solve user data in the past. Instead of sticking with one plan, they've thrown up several solutions; ditching one and moving to the other when they feel it isn't working fast enough. Unfortunately, that type of behavior simply isn't going to lead to growth in the company. Nonetheless, investors seem to be happy about the acquisition announcement today…
What We Saw In The Market As A Result Of The Acquisition
Twitter had a great day in the market today. Since the acquisition shows that the company is working on its most pressing problem, it excited investors. As a result, TWTR grew 3.51% on high volume with 17,113,383 shares trading hands throughout the day. Now, the stock is reaching a very important point. As a result of the climb, Twitter is now trading very close to resistance at $35.90 per share.
How To Take Advantage Of The Trend
As traders, we know that big things happen when stocks reach either support or resistance. In the case of Twitter, the stock is likely to reach the $35.90 resistance line in early trading Monday before falling back down. As a result, binary options traders will have the ability to profit from put options. However, in the off chance that the stock does break the $35.90 resistance point, we can expect to see massive bullish trends; opening opportunities for profitable call options. So, no matter which way this thing goes, we're likely to see incredible gains by trading the stock on the trend we see!
What Do You Think?
Where do you think TWTR is headed and why? Let us know in the comments below!