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Twitter Explores Subscription Models for Users

CEO Jack Dorsey has reportedly discussed potential subscription products including tips from followers to provide an economic incentive to its users.

Twitter  (TWTR)  is exploring ways to help users monetize their social equity on the platform through new content features or payments from followers or a regular subscription as the social media website looks to curtail its dependence on advertising revenue.

Twitter's chief executive Jack Dorsey made these remarks during a tech conference on Wednesday, Bloomberg reported. The company is expected to begin testing some subscription offerings later this year.

“The first thing we want to focus on is that economic incentive to people who are contributing to Twitter,” Dorsey said. “That can come through a regular subscription, that can come through content unlock, that can come through tipping. There is a host of things and right now we are just studying and prioritizing what those things look like.”

Last month, Twitter acquired newsletter startup Revue in a bid to build additional revenue streams through subscription products.

Twitter said the service would bring subscription revenue to writers on the platform through paid newsletters.

On Thursday, an analyst at MoffettNathanson upgraded Twitter to neutral from sell a day after it reported better-than-expected fourth-quarter earnings.

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Analyst Michael Nathanson said Twitter’s revenue growth, particularly, advertising revenue has “been strong across the digital and traditional landscape, Twitter’s growth rate stands out.”

The revenue growth “speaks to [Twitter’s] opportunity to attract and retain performance advertisers that are the backbone of the digital ad marketplace”

He raised his price target on the stock to $55 from $30.

Analysts at Jefferies, Baird, Piper Sandler have also raised their price targets on the tech stock following stellar earnings.

TheStreet's Jim Cramer said after the latest earnings that Twitter can reach $100 a share as management continues to do the right thing.

Shares of the San Francisco company were off 0.15% to $67.7 at last check during trading.