Twitter's stock has suffered from a cascading series of meltdowns since its IPO (see chart, below) as its revenue, growth in users, and related metrics have disappointed when compared to peers like Facebook and Google.
One financial analyst, on record as a Twitter short, describes it this way:
After this week's relief rally, Twitter closed at $17.82, almost 50% down from my initial short recommendation in July 2015. In part, I believe this is because I was fundamentally right about Twitter as a niche product for a select group of power-users such as journalists, media personalities and self-important adolescents...What I haven't grasped for years, when I first wrote about this topic in 2014, is why Twitter ignores monetizing its incredible reach through embedded Tweets:
Think about it: the Twitter platform receives significantly more exposure than Facebook on new media sites like Twitchy and BuzzFeed. These sites embed tweets -- served up by Twitter -- as a key part of unfolding news stories, quite unlike any other social site:
Twitter doesn't appear to be making a cent from serving up content to news sites. The hope with embedded tweets, I suppose, is to convince people that they're missing out if they're not on Twitter. Which they are, of course.
But that said, these embedded tweets are a huge missed opportunity. Consider this hypothetical monetization approach:
Or perhaps a tweet with "media" (an image):
You may hate ads, but if they're targeted and relatively unobtrusive, the fact is that someone has to pay for your troubling addiction to real-time news. Natch.
Oh, and Twitter: my royalty for this idea is a paltry one percent of gross revenues, in perpetuity.
In all seriousness, I'm utterly mystified by the failure of Twitter's management team on this front.
Hat tip: BadBlue Tech News.