Twitter Inc (NYSE:TWTR) Changes 140 Character Rule in Search for Revenue

Twitter Inc (NYSE:TWTR) Changes 140 Character Rule in Search for Revenue

Twitter Inc (NYSE:TWTR) Changes 140 Character Rule in Search for Revenue

Twitter Inc (NYSE:TWTR) is easing its once guarded 140-character limit for tweets, allowing users to add links, attachments and some other features within the short messages in the hope the new format will bring more users, more relevance and of course more advertising.

For us at HEFFX it is a change that may not result in a much needed revenue boost, we have TWTR rated at a Sell.

It means more room for text and conversation in each tweet and less frustration for everyone who’s been forced to edit their words in order to fit them inside Twitter’s constraints.

The new rules apply to “promoted” tweets or ads, the new format gives marketers more room to tell their story or pitch their products and services with both text and media.

The number of monthly active users was 310 million, up three percent from a year ago and only slightly higher than the 305 million in the previous quarter.

Twitter Inc (NYSE:TWTR) is struggling to hold users against competition from Instagram, Facebook and Snapchat.

Twitter Inc (NYSE:TWTR) is having issues there is no doubt.

TWITTER INC closed up 0.800 at 15.100. Volume was 37% above average (neutral) and Bollinger Bands were 75% narrower than normal.

Open High Low Close Volume___
14.250 15.100 14.240 15.100 5,803,125

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 14.36 15.72 21.67
Volatility: 42 68 66
Volume: 4,300,353 4,326,296 3,820,148

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TWITTER INC is currently 30.3% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 21 periods.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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