Amazon.com (NASDAQ: AMZN ) and Twitter (NYSE: TWTR ) have fallen out of favor by correcting in recent weeks, but the two dot-com giants are hoping to change that with a simple hashtag. The two companies introduced #AmazonCart this week, a hashtag that can be used to respond to any tweet featuring an Amazon product link. Replying with #AmazonCart automatically places the object in the person's virtual shopping cart to buy later through Amazon.com.
It makes sense. A friend bragging about a new band's release or a celebrity pitching a book could be forgotten while scrolling through a Twitter feed. This makes every Amazon-related post a potential impulse purchase, as long as the buyer connects the two sites to opt in to the new service.
What's in it for Twitter? The micro-blogging giant's been taking a beating lately. Two weeks ago it was a disappointing quarterly report that sent the shares lower. Investors were concerned that sequential user growth increased by just 14 million, with growth starting to peak domestically. This past week it was the post-IPO lockup expiration. Breaking bread with Amazon -- even if it's a relationship that does more in the near term for Amazon than for Twitter -- helps validate the social-media platform for e-commerce.
What's in it for Amazon? Do you have to ask? The visibility of the #AmazonCart hashtag will get more people to include Amazon links in their tweets, especially bloggers and webmasters who already have an affiliate relationship with the leading online retailer. There will be more exposure and probably more sales as a result of the new hashtag.
The big just keep on getting bigger.
Briefly in the news
And now let's look at some of the other stories that shaped our week.
- King Digital Entertainment (NYSE: KING ) got crushed like candy pieces in its flagship Candy Crush Saga mobile game after posting quarterly results. Growth was impressive on its own, with gross bookings soaring 193% and adjusted profitability more than tripling. However, the numbers show that this is the second sequential decline in revenue for its signature game. That naturally scares investors concerned that King Digital may not have another hit franchise in its arsenal.
- Tesla Motors (NASDAQ: TSLA ) also shifted into reverse after posting quarterly results. Growth was solid for the electric-sedan maker, but margin pressures will make Tesla only "marginally profitable" for the current quarter. Given Tesla's monster run over the past two years, this week's retreat is little more than a rounding error.
- Jamba (NASDAQ: JMBA ) held up better than King Digital and Tesla with its quarterly report. The leading smoothie chain posted a narrower loss than analysts were expecting during the seasonally slow first quarter. Revenue slipped, but that's a matter of handing over several company-owned locations to franchisees over the past year. Comparable-store sales clocked in positive for the period. It's not a stellar showing, but things will get better once temperatures warm up and all-natural smoothies step up to refresh.
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