Twitter TWTR will begin gradually rolling out the long-awaited edit button feature for Twitter Blue subscribers in the United States. The feature was introduced earlier this week in Australia, Canada and New Zealand.
Twitter Blue is a service offered by Twitter that unlocks exclusive features such as the ability to undo tweets, bookmark folders, ad-free articles, and more. The subscription service also lets users try out new features before they become available to the public, such as the new “Edit” button.
Subscribers who pay $4.99 per month for Twitter Blue can edit a tweet up to five times in a 30-minute window after publishing the post — things like fixing typos or adding missed tags — after it has been published.
Edited tweets will appear with an icon, timestamp and label, so it will be clear to readers that the original tweet has been modified. Tapping the label, Twitter says, will take viewers to the tweet’s edit history, which will include past versions of the tweet.
Over the years, Twitter has been stubborn about introducing an Edit button. In 2016, Twitter CEO Jack Dorsey mentioned that Twitter might never get an Edit feature. He had raised concerns that users might misuse the Edit feature to alter tweets after a tweet has been widely shared.
Tesla chief executive Elon Musk, who is locked in a lawsuit with Twitter over his effort to break his $44 billion deal to buy the global social media site, had backed an edit button shortly before the company said in April that it was studying the change.
The recent announcement is expected to boost user engagement and the performance of Twitter’s shares. The stock has returned 14.3% against the Zacks Computer and Technology sector’s plunge of 33.1% in the year-to-date period.
Twitter, Inc. Price and Consensus
Twitter, Inc. price-consensus-chart | Twitter, Inc. Quote
Platform’s Feature Additions to Aid User Growth
In 2022, eMarketer predicts that Twitter users will witness growth of at least 2% and then a downward trend, reaching 1.8% growth and 1.6% growth in 2023 and 2024, respectively. The company has constantly worked on developing and providing users with more relevant and useful features in 2022.
Last month, Twitter announced the launch of Twitter Circle, a new way to Tweet to a smaller crowd. The feature enables people to choose who can see and engage with their content on a Tweet-by-Tweet basis. This makes it easier to have more intimate conversations and build closer connections with select followers.
In August, Twitter announced that the company integrated podcasts in the newly redesigned Spaces Tab. This redesign introduces personalized hubs that group audio content together by specific themes like News, Music, Sports, and more.
On Jul 12, Twitter rolled out Gaming reports, which claim that in the first half of 2022, there were around 1.5 billion Tweets about gaming – a record half following up on a record year for gaming conversation in 2021.
This Zacks Rank #3 (Hold) company has also been witnessing an upswing in advertiser sentiment toward digital ads. Also, improvement in the ad environment is a positive. In second-quarter 2022, advertising revenues increased 2% year over year to $1.08 billion. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Intensifying competition for ad dollars and user engagement from the likes of Snap SNAP, Meta Platforms META and Alphabet GOOGL-owned Google are other headwinds.
Snap is benefiting from improving its user engagement, particularly in the 13-34-year-old demography, which is expanding its advertiser base.
In its race to target TV ad dollars, Alphabet allowed third-party (Nielsen and comScore) tagging of YouTube videos to determine the effectiveness of ads on YouTube versus ads shown on TV. The Google Preferred program pulls out the top 5% of the most engaging content on YouTube for advertisers. Alphabet has also promised to advertise this content itself in order to boost traffic.
In the second quarter of 2022, total Google advertising revenues grew 11.6% year over year to $56.3 billion and accounted for 80.8% of the total revenues.
META is pumping resources into developing AI to address solutions for megatrends like a hybrid work environment, which will drive its user base across various platforms like Meta Portal Go. Investments in AI are also expected to draw higher revenues from Meta’s ad business.
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