Twitter Inc (NYSE:TWTR) is still in tough position. In terms of brand recognition and user numbers, the company is one of the most important social networks out there. In terms of earnings and financial stability the stock is less than a sure thing. This morning the company announced the acquisition of Gnip, a data analysis company. The move should further the firm’s money-making goals.
According to a post on the Twitter Inc (NYSE:TWTR) official blog this morning, Gnip is a “leading provider of social data and a long-standing Twitter data partner.” The firm has, according to Twitter PR, “played a crucial role in collecting and digesting our public data and delivering the most essential Tweets to partners.” Gnip sounds like promising buy for Twitter, but it’s not going to form a salve for the company instantaneously.
Twitter bets on big data
Gnip claims to be the first data provider to work with Twitter Inc (NYSE:TWTR). The company offers real-time and historical data analysis for its customers. As Twitter seeks to make more money, it may see more value in selling data analysis products to businesses and institutions rather than pushing advertising that could alienate its users.
The company’s own blog added that the acquisition by Twitter Inc (NYSE:TWTR) was to allow them to “go much faster and much deeper,” and “a broader set of use cases across a diverse set of users including brands, universities, agencies, and developers big and small” Joining the company will also, according to Gnip CEO Chris Moody, provide “access to resources and infrastructure to scale to the next level and offer new products and solutions.”
Data analysis is incredibly important for Twitter Inc (NYSE:TWTR) whether the company is looking to compete in advertising or in data analysis. The firm will be able to leverage the real time response of its user base to infinite stimuli, and analyze those responses. What it decides to do with the output will define the business in the long term.
Twitter still struggles for earnings
This morning’s acquisition, which involved the payment of an undisclosed sum, isn’t exactly a major one for Twitter Inc (NYSE:TWTR), but it is incrementally important as the firm tries to figure out where it revenue is supposed to come from in future. The company is expected to release its earnings numbers for the first quarter of 2014 on the 29th April.
Twitter Inc (NYSE:TWTR) lost money in 2013, and the outlook for 2014 isn’t all that positive. 28 analysts surveyed by Businessweek are looking for earnings of just one cent per share for the full year ahead. Twitter may be expanding its options with the acquisition of Gnip, but it is still miles away from returning significant value to its shareholders.