Twitter will test a much-requested feature
Twitter (TWTR) plans to start testing a feature that will allow users to edit their tweets. He said the so-called “Edit” button has been the most requested feature by his 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 functionality in its premium Blue Labs Twitter service. Access to the service requires the purchase of a subscription which costs $2.99 per month. Twitter will use the test to find out what works and what doesn’t about the feature and explore other possibilities.
Twitter’s head of consumer products, Jay Sullivan, explained that the editing feature should be rolled out with caution as it could be misused and it would take time before the feature is widely launched.
Elon Musk poll shows high demand for Edit button
Without a way to edit a post to correct an error, people often get around the problem by deleting it and re-tweeting it. Twitter said it has been considering giving its users the ability to edit posts since 2021. Before announcing the edit button test, Tesla (TSLA) CEO Elon Musk has launched an online survey 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 bars the billionaire from owning more than 15% of the company’s stock. Musk is Twitter’s largest shareholder, with a 9.2% stake.
Although Twitter revealed the edit button plan shortly after Musk tweeted, the company clarified that it didn’t get the idea from the Tesla chief. However, Musk has promised to make significant improvements to Twitter.
The Taking of Wall Street
On April 5, Jefferies analyst Brent Thill reiterated a Hold rating on Twitter with a price prediction of $48, indicating a downside potential of 5.9%. Thill thinks Musk’s investment may have been intended to give him a position from which to influence Twitter’s moderation policies. Musk has long been critical of how Twitter moderates content.
The stock has a consensus holding rating based on eight buys, 18 holds and two sells. The average Twitter price target of $45.58 implies a downside potential of 10.59% from current levels.
TipRanks data shows that Twitter’s News Score is currently positive based on 455 posts in the last seven days. Notably, 75% of articles have bullish sentiment compared to an industry average of 64%, while 25% of articles have bearish sentiment compared to an industry average of 36%.
The takeaway for investors
Giving its users a long-requested feature could help Twitter encourage people to spend more time on its platform, which would benefit its advertising business. Advertising currently represents the bulk of the company’s revenue. If Twitter decides to limit the Edit functionality to Twitter Blue Labs, it could encourage more users to join the premium service and allow it to garner more subscription sales.
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