Awaken by good management and an improving product, shares of Twitter, Inc. *NYSE: TWTR) are on fire. The stock is now more attractive than Snap (NYSE: SNAP) and Facebook (NASDAQ: FB) at least in the short-term.
Twitter’s CEO admitted the site is still not easy to use but in the last six to nine months, the company matched the content with its user base. This led to higher user interactions and activity. Twitter took steps in improving the quality of the MAUs (monthly active users) in several ways.
First, it cleaned out the Twitter bots, checking that the user behind the account is a person and not an algorithm. This, along with enforcing safety policies more aggressively, resulted in an MAU of 330 million in the fourth-quarter. Twitter tweaked the site to detect and re-mediate automatic content and malicious manipulation. Concurrently, it matched content context with user searches. Trends are better-presented. The more relevant content presented to users is having a positive impact on the site’s usage.
Product improvements are driving MAU numbers higher. Though it faced headwinds from information quality issues, the removal of dormant accounts will pay off as promoting actual users on the site will make Twitter a better social place.
