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Twitter (TWTR) Brings Newsletters Feature With Revue Buyout

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Twitter has been focused on adding new product capabilities to its platform to attract customers. The recently announced acquisition of a newsletter publishing startup, Revue, falls in line with the same trend. The transaction value was not disclosed by the company.

The Netherlands-based startup enables writers to create and publish editorial newsletters for free. Additionally, the company provides subscription-based services to help content creators monetize their audiences. Revue’s customer base includes companies like Vox Media, The Markup and Chicago Sun-Times.

Per the deal, Revue will continue to remain a standalone service within Twitter’s platform. Twitter has made Revue’s Pro features available for all the accounts for free. Further, the company has reduced the fee charged on paid newsletters to 5%.

Notably, the lowered fees will help the writers retain more of the revenue earned from subscriptions. This is expected to help Twitter attract more writers and publishers to create newsletters using the company’s platform, thereby driving customer acquisition.

Efforts to Fight Misinformation: A Major Positive

Twitter’s shares have returned 48.6% over the past year compared with the Zacks Internet – Software industry’s growth of 95.1%.
 

The social media giant largely benefits from increased conversations on its platform concerning current global scenarios. Moreover, it is consistently driving innovation on its platform by adding new product capabilities, to fuel audience growth.

However, growing user engagement on the company’s platform has made it more susceptible to false news. Nevertheless, Twitter’s continuous efforts to safeguard its platform with measures like removing fake pages and encouraging users to read articles from other websites before retweeting them, are major positives.

Moreover, recently, the company introduced a trial program named Birdwatch, which allows its users to address misleading tweets and write notes to provide information on the context. Initially, the notes will be written by pilot participants, while these can be accessed by everyone separately on the Birdwatch website.

The program is aimed to stop the spread of misinformation on the company’s platform and make it more credible by providing audiences with the right kind of information.

New Product Capabilities to Drive Platform Engagement

Notably, Twitter’s Fleets, which was introduced in November 2020 and is similar to short-lived text, photo or video features in Snap’s (SNAP - Free Report) Snapchat, Facebook’s Instagram, WhatsApp and LinkedIn, and Alphabet’s (GOOGL - Free Report) YouTube, reflects its efforts to attract users with innovative product capabilities.

Moreover, this Zacks Rank #3 (Hold) company has pursued multiple acquisitions to add new features to its platform. Earlier this month, it acquired Breaker, a social podcasting application, which gives Twitter access to the latter’s podcast content and enhances interaction on the social media platform through audio communication. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company also acquired Squad, a screen-sharing social application, which is likely to be integrated with its main platform. Twitter intends to expand its product portfolio by adding features like screen-sharing on mobile or desktop with simultaneous video chatting.

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