Twitter is developing a new Snapchat-style feature in a bid to develop the app into a more fully-featured offering.
Twitter’s popularity had been declining in the face of fierce competition from the likes of Snapchat and Instagram.
Its user-base was stagnating and the share price was declining – with some pundits wiriting it off as a one-trick pony.
However, the return of co-founder Jack Dorsey in 2015 – and some free publicity from President Trump – has revitalised both the company and the share price.
Dorsey has made the app easier to use, and recently doubled the character limit from 140 to 280 characters.
Further blow to Snapchat
The stock dipped under $14 in 2016, but is now trading at around the $22 mark.
Now sources have told Bloomberg that Twitter is working on a new video-sharing tool similar to Snapchat’s offering that will allow users to post videos quickly and easily.
The news is a further blow to Snap, which has seen its app’s best features ‘borrowed’ by Facebook-owned Instagram.
“Snap is on shaky ground so any iterative news on encroachments of their product experiences is bound to spook,” commented James Cakmak, an analyst at Monness Crespi Hardt & Co.
Twitter COO quits
Some analysts have also questioned how Twitter will cope with the departure this week of chief operating officer Anthony Noto.
The former Goldman Sachs banker helped with Twitter’s IPO, and went on to become chief financial officer before taking the role as COO, with Dorsey preoccupied with his other role as CEO of the payments company he co-founded, Square.
“The only reason Twitter had a COO is because the CEO didn’t have the bandwidth to run the company on the day-to-day basis,” commented Cakmak.
‘Not a disaster’
However, not everyone believes Noto’s departure is a disaster.
“While we are obviously disappointed in Noto’s departure, we do not view it as thesis-changing,” said JPMorgan analyst Doug Anmuth in a note to investors.
“We continue to believe both the Twitter story and financial results will strengthen over the next year.”
Snap is currently trading at $13.71, down from a week’s high of $14.69, while Twitter is trading at $22.16 (1:40pm GMT 26 Jan 2018).