Twitter (TWTR) investors are seeing a nice boost in share price today on rumors of a sale. Of the two companies looking to buy the troubled social media platform, Alphabet's (GOOGL) Google and Salesforce (CRM) , Alphabet appears to be the one most likely to be able leverage Twitter's data and user base to drive revenue.
Twitter is a great platform for a large number of people for an equally large number of reasons, it's just not very valuable to advertisers, otherwise known as Twitter's main source of revenue. The dynamic of Twitter is quick info, and while its usefulness and impact has been incalculable, its user growth has remained stagnant, as has its ROI for both advertisers and investors.
So what could be driving the interest? While I do think Twitter will continue to have difficulty becoming a viable advertising platform itself, the value of its users could prove to be a door opener for Google. What Google failed to do with its social network Google+ it could begin to do with Twitter.
Google is one of the richest corporations in the world, and how it has amassed that fortune is primarily by selling ads that are related to people's search queries. This is an extremely effective way to reach customers, because when you know exactly what somebody is searching for, you can deliver ads directly related to those queries. For some circumstances, it really is the only way to go.