Twitter (TWTR) Overview of Platform Changes and Why They Dont Matter - Wedbush

Wedbush analyst, Michael Pachter, noted Twitter, Inc. (NYSE: TWTR) platform changes but thinks they will have little effect. No change to Neutral rating or $20 price target.

Twitter announced four changes intended to simplify Tweets that will roll out over the next severalmonths. First, @names will no longer be included as part of the 140-character count when replying to a Tweet, freeing up additional characters for use. Similarly, media attachments (including photos, polls, and videos, among other items) will no longer count as characters. Users will be able to Retweet or Quote Tweet themselves in order to highlight a new or old thought. Finally, new Tweets beginning with a username will reach all of the applicable user’s followers even without placing a period before the @ sign. Previously, Twitter users had used “.@” to reach all of their followers, as an “@” without the period reached only the user or users listed out. Twitter also disclosed that it is working on ways to make existing uses easier and to enable new uses without providing specifics. Twitter’s latest efforts follow the introductions of GIF search, polls, and live

Periscope broadcasts in Twitter for iOS.

The analyst views the changes as a step in the right direction but sees two big issues:

1) the changes outlined will likely appeal most to experienced or power users, those who are the least likely to churn out of the platform in the first place

2) even after Tuesday’s changes, Twitter remains difficult to use, particularly for those who are new to the platform or inexperienced.

For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.

Shares of Twitter, Inc. closed at $14.03 yesterday.

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