Twitter (NYSE:TWTR) stock fell more than 7% recently, following news of management changes at the microblogger. Are investors overreacting? Guest host Alison Southwick puts these questions to Fool analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up on Wall Street, The Motley Fool's Web show in which we talk about the big-money names behind your favorite technology, movies, toys, video games, comics, and more.
Most of the bleeding happened on July 8, and seems tied to the news that international business development chief Katie Stanton Jacobs would take over from Chloe Sladden as head of the media division.
You'd think investors would be able to overlook the change, given how the entire world has taken to the site to discuss the ups and downs of the World Cup football tournament. Through June 27, there had been more than 300 million tweets using the #WorldCup hashtag. Internal researchers have spent plenty of time analyzing the data, crafting graphics that express Twitter's ability to tap in to the zeitgeist:
Nathan says fans' enthusiasm is a good sign, and that management changes aren't usually anything for investors to worry about. Here, there's no evidence that Twitter is veering from its stated strategy to win more advertisers to its platform.
Tim agrees, noting that Twitter's platform has proved attractive to engagement-driven businesses such as broadcast television. In October, Comcast (NASDAQ:CMCSA) teamed with the microblogger to give users fast access to video clips or even whole episodes from a single tweet. In April, Twitter forged a similar arrangement with British Sky Broadcasting (NASDAQOTH:SKYAY). So long as users turn to the platform for news and discussion on the world's big news and events, we'll see more deals like these, Tim argues.
Now it's your turn to weigh in. How do you rate Twitter stock right now? Click the video to watch as Alison puts Nathan and Tim on the spot, and then leave your take in the comments box below. You can also follow us on Twitter for more segments and regular geek news updates!
Neither Alison Southwick nor Nathan Alderman nor Tim Beyers owned shares in any of the stocks mentioned in this article at the time of publication. The Motley Fool recommends Twitter. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.