With Twitter’s (TWTR) recent stock market woes–investors are wondering where Twitter should direct its attention moving forward. It is obvious that the time for a major technology update has come, but there are also areas where Twitter could stand to improve. Since big data and intelligent analytics seem to be the current industry buzzwords, it seems that Twitter has much to gain with its mass stockpile of data.
By the fourth quarter, analysts predict Twitter’s data licensing revenue to come in between $13 and $15 million. While it is a small percentage of Twitter’s total revenue, it has a large upside. However, Twitter doesn’t appear to be giving it much of a push. Right now, Twitter targets advertising as its main source of income. These are the promoted tweets, accounts and trends. It also implements a pay-for-performance advertising model. Although advertising is bringing in revenue streams for the company, it is flippant at best. This is just one of the reasons investors worry.
Data licensing is a platform that continues to grow throughout the industry. If Twitter were to make an effort to expand its offering, it might very well see itself soar to new heights. If anything, it could certainly affect its stock price for the better.
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