Monday, March 6, 2017

Twitter Engagement Figures Post Algorithm Change & Valuation Impact

Question from an investor's standpoint. I day trade a number of tech stocks, Twitter included, and their quarterly reports always include user engagement figures which is a great indicator of the health of the platform.

My question is that with Twitter's new algorithm making a large number of tweets invisible, are their upcoming reports going to be including the invisible tweets in the engagement numbers, or properly subtracting them since they can't actually be viewed?

I don't care about the politics of it being "right" or "wrong" to censor some of the tweets deemed offensive by their algorithm, purely interested in how this will effect reported engagement numbers.

My concern is if just, lets say, 10% of tweets are now hidden due to offensive content, thats 10% less potential for ad impressions and therefore revenue.

Furthermore those hidden tweets can no longer be replied to, retweeted or shared, thus compounding the loss of true engagement. If those 10% of tweets are still included in the engagement numbers since they were technically still made, despite not being visible, that would be a significant misrepresentation of user activity.

Haven't seen them address this to investors, so was curious if anyone had any potential insight.



Submitted March 06, 2017 at 05:26PM by garbagetime01 http://ift.tt/2mcwSX9

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