Twitter is “an instant fit” for Google, according to Twitter investor Chris Sacca. The long-time Twitter investor has been pushing the company to enhance its products and services to attract more users and advertisers.
Good fit for Google
On being asked if he wants Twitter to remain independent, Sacca said on CNBC on Wednesday that acquiring Twitter would be an apt use of Google’s cash. He said that Google always lacked a portal like this, never understood social and never got insight on personal interactions.
Previously, Sacca in his 8,500-word blog post, said the micro-blogging site should expand with new products to underline the company’s content around live events and popular discussions. Sacca said that if Twitter lends an ear to such suggestions, then there are good chances that it will remain an independent company, but if it fails, then Google, Microsoft or Facebook should place bids for San Francisco-based company.
Sacca noted that Twitter allows users to create 140-character tweets with photos and videos but could not effectively tell its own story to investors. Shares of the company are down 28% since late April when the company scrapped its sales forecast and posted revenue that was below analysts’ estimates. The lackluster performance of the company raised doubts about management’s credibility and assessments of advertiser and consumer demand.
What should Twitter do to transform?
“I believe Twitter can be so much more than it is today,” said Sacca. The investor stated that the micro-blogging company should take more risks, pointing out that around 1 billion people who have used Twitter did not remain with it. According to Sacca, some significant changes are needed, such as apps that could sort out posts by topic instead of doing it chronologically or suggest to users on what to post, would increase Twitter’s appeal.
Even though Twitter stock has climbed more than 40% since the company’s November 2013 IPO, it is around half the peak value of December of that year. Sacca wrote that the conversion of Twitter into a public company has been a daunting task, and in the process, the company has disappointed Wall Street more than once. Sacca said that if Twitter can bring in changes the right way, soon there will be hundreds of millions of more users using the platform from outside.
On Wednesday, Twitter shares closed up 1.68% at $37.01, and year to date, the stock is up by over 3%.