NEW YORK (TheStreet) -- Shares of Twitter (TWTR) are gaining 0.98% to $35.02 on Thursday after the company said that it acquired Massachusetts-based machine learning startup Whetlab to help better organize its social media platform, according to The Wall Street Journal. The price was undisclosed.
Several reasons for the acquisition is so that the San Francisco-based company can sift through half a billion tweets that are sent each day, and find a way to organize content, which is what Whetlab's software will do, the Journal noted.
"Over the past year, we have created a technology to make machine learning better and faster for companies, automatically," Whetlab said. "Twitter is the platform for open communication on the internet and we believe that Whetlab's technology can have a great impact by accelerating Twitter's internal machine learning efforts."
For instance, Twitter will try to group the most popular tweets into different categories like "cute animals" and celebrities, which will help attract users who view tweets but don't necessarily log in, the publication said.
Whetlab added that its company will be shutting down its services on July 15.
Additionally, this acquisition comes after CEO Dick Costolo announced last week that he will be stepping down from his position on July 1.
Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a SELL. This is driven by multiple weaknesses, which we believe 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 we feel are negative, one of the most important has been unimpressive growth in net income over time."