Twitter (TWTR) Streaming Deal a 'Good First Step,' Recode's Swisher Tells CNBC
NEW YORK (TheStreet) --Twitter (TWTR) - Get Report recently announced streaming agreements across major sports leagues, including the NFL and NBA, to stream games live within its app. Kara Swisher, executive editor of Recode, joined CNBC's "Squawk Alley" to discuss why she feels this is a good move for Twitter.
"Everybody has to become a broadcaster in a lot of ways, creating ways for people to stay on their app. One of the problems with Twitter is that people aren't engaged enough. They need to create experiences that aren't just people putting up videos. It's more than that, it's something fun so that you stay on the app," Swisher explained.
Twitter has already rolled out a sample of what this service will eventually look like by streaming live coverage of the 2016 Wimbledon Tennis Tournament. However, critics such as Variety have called the initial experience "clumsy."
"I think it's clumsy for the people who don't use mobile phones all the time, and who don't understand them, but I think younger people do. As people are becoming increasingly comfortable with the platform, I think it's a good first step for sure," Swisher said.
"I think they have to try it, because what else do they do? They have to have something on there that differentiates them. People don't want to fire up nine apps, and this service enables them to give people more stuff to consume in a place they're already consuming," Swisher noted.
In regards to the long-term outlook for Twitter and this service moving forward, "I'm still of the feeling that it will have to be sold, but until then they really do have to try to appeal to advertisers, and marketers, and have things to offer them," Swisher concluded.
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Shares of Twitter are on a multi-month upswing, and are trading higher today 3.91% to $18.06.
Separately, TheStreet Ratings rates Twitter as a "Sell" with a ratings score of "D." This is driven by a number of negative factors, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover.
Among the areas TheStreet Ratings feels are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TWTR