Twitter is working on a ‘tipping’ feature that will allow people to tip other users for great tweets. The Verge reports that the networking giant could offer a tipping button on users’ profiles. Pictures shared online indicate that the feature will come with a little blue cash button.
Clicking or tapping the button will provide users with options for tipping through Square’s (SQ) Cash App, PayPal (PYPL), Venmo, and Bandcamp. Reports also indicate that Twitter (TWTR) is working on a ‘Tip Jar’ feature for its Twitter Spaces. A ‘Super Follows’ feature that allows creators of content the ability to charge followers for additional content could also be in the pipeline, according to The Verge.
Given that Twitter is yet to formally confirm the tipping feature, there is no guarantee that it will actually be released. The Verge indicates that even if the feature were to materialize, it would likely come with some restrictions. For instance, it could be gated in some cases whereby only people with a certain number of followers or verified users would be allowed to use it.
Twitter shares are up 24% year to date after a 69% pop in 2020. (See Twitter stock analysis on TipRanks).
Twitter’s product development efforts have caught the attention of Argus Research analyst Jim Kelleher. The analyst has since reiterated a Buy rating on the stock buoyed by the company’s increased focus on growth, product development, health, and security of the site.
The analyst increased his price target for the stock to $82 from $72, implying 22% upside potential to current levels. According to Kelleher, mDAU remains aligned with recent user growth. Kelleher also believes Twitter will have to step-up growth in advertising sales to meet the 2023 revenue goal.
Overall, Wall Street is cautiously optimistic about Twitter’s prospect going by the Moderate Buy consensus rating. 14 analysts rate it a Buy, 19 a Hold, and 1 a Sell. The average analyst price target of $75.78 implies 13.07% upside potential to current levels.
TWTR scores an 8 out of 10 on the TipRanks’ Smart Score system, suggesting that it is well-positioned to outperform market expectations.
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