Twitter's video push seen taking time to fast-forward growth
By Tenzin Pema
(Reuters) - Video may have killed the radio star, but it could offer a lifeline to Twitter Inc (TWTR.N: Quote). Just don't expect a turnaround in the company's flagging fortunes anytime soon, analysts said.
Twitter on Tuesday reported its slowest quarterly revenue growth since going public in 2013 as its user base grew by just 1 percent in the three months ended June.
The company's shares fell nearly 14 percent on Wednesday, wiping out about $1.7 billion of market value.
More was hoped for when co-founder Jack Dorsey returned to the company a year ago, first as interim chief executive and later as permanent CEO. Since he took over the interim role in July last year, Twitter has lost about half its market value.
Twitter has made it clear it sees video as a way ahead.
"We have become a video-centric platform. Video is now the number one ad format in terms of revenue on Twitter," Chief Operating Officer Adam Bain said on a conference call.
Twitter faces a tough battle to win market share, though, as it goes up against Alphabet Inc's (GOOGL.O: Quote) long-established YouTube, Facebook Inc's (FB.O: Quote) new Facebook Live and Instagram, and social media app Snapchat.
Highlighting its video strategy, Twitter has signed video deals with the National Football League, National Basketball League, Major League Baseball and the National Hockey League. Continued...