Market News

Twitter to Test High-Demand Feature

Twitter (TWTR) plans to begin testing a feature that will enable users to edit their tweets. It said the so-called “Edit” button has been the most requested feature among its users for many years. Twitter stock rose more than 2% to close at $50.98 on April 5.

In the coming months, the company will begin testing the Edit feature in its premium Twitter Blue Labs service. Access to the service requires purchasing a subscription that costs $2.99 per month. Twitter will use the test to learn what works and what does not work about the feature and explore other possibilities. 

Twitter’s Head of Consumer Products, Jay Sullivan explained that the edit feature needs to be rolled out with care because it could be misused, and it would take time before the feature is widely launched.

Elon Musk’s Poll Shows High Demand for the Edit Button

Without a way to edit a post to correct an error, people often get around the problem by deleting it and tweeting it again. Twitter said that it has been considering giving its users the ability to edit posts since 2021. Before it announced the edit button test, Tesla (TSLA) CEO Elon Musk ran an online poll for his followers. The poll revealed that several followers wanted Twitter to allow users to edit their posts. 

Twitter named Musk to its board in a deal that also prohibits the billionaire from owning more than 15% of the company’s stock. Musk is Twitter’s largest shareholder, with a stake of 9.2%

Although Twitter revealed the edit button plan shortly after Musk tweeted about, the company clarified that it did not get the idea from the Tesla chief. However, Musk has promised to bring significant improvements to Twitter.

Wall Street’s Take

On April 5, Jefferies analyst Brent Thill reiterated a Hold rating on Twitter with a price forecast of $48, which indicates 5.9% downside potential. Thill thinks that Musk’s investment may have been intended to give him a position from which he could influence Twitter’s moderation policies. Musk has long been critical of how Twitter moderates content.

The stock has a Hold consensus rating based on eight Buys, 18 Holds, and two Sell. The average Twitter price target of $45.58 implies 10.59% downside potential from current levels.

News Sentiment

TipRanks data shows that the News Score for Twitter is currently Positive based on 455 articles published over the past seven days. Notably, 75% of the articles have a Bullish Sentiment compared to a sector average of 64%, while 25% of the articles have a Bearish Sentiment compared to a sector average of 36%.

The Takeaway for Investors

Giving its users a feature they have requested for long could help Twitter encourage people to spend more time on its platform, which would benefit its advertising business. Advertising currently accounts for most of the company’s revenue. If Twitter decides to limit the Edit feature to Twitter Blue Labs, it could get more users to join the premium service and allow it to collect more subscription sales.

Download the TipRanks mobile app now.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Afya Augments Its Content Expertise
Analog Devices Showcases Top-Line Strength at Investor Day
Nio Explores Additional Revenue Stream

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More