Twitter Buys Newsletter Publisher Revue
Twitter announced yesterday that it has acquired newsletter startup Revue for an undisclosed fee. Revue is a free service that allows anyone to start and publish their own newsletters and to monetize their audience.
Twitter (TWTR) has lowered the paid newsletter fee to 5%, allowing writers to keep more of the revenue that is generated from subscriptions for themselves.
In a blog post on Tuesday, Product Lead, Keyvon Beykpour, and VP of Publishing, Mike Park, wrote, “Many established writers and publishers have built their brand on Twitter, amassing an audience that’s hungry for the next article or perspective they Tweet. Our goal is to make it easy for them to connect with their subscribers, while also helping readers better discover writers and their content.”
The introduction of Revue to Twitter allows those looking to generate revenue through paid newsletters to grow their paid subscription base while incentivizing them to produce content that drives conversations on Twitter. (See TWTR stock analysis on TipRanks)
MKM Partners analyst Rohit Kulkarni upgraded his rating on TWTR from a Hold to a Buy two weeks ago and set his price target at $60. This implies upside potential of around 21% from current levels.
Kulkarni believes that as 2021 progresses, Twitter will have the greatest incremental benefit versus its peers as brand advertisers increase their advertising budgets while the world regains some form of normalcy as it emerges from the coronavirus pandemic.
Meanwhile, analysts on the Street are slightly more cautious, with a Moderate Buy consensus rating based on 9 Buys, 16 Holds and 2 Sells. The average price target of $52.04 suggests upside potential of around 5% over the next 12 months.
Blogger Opinions on TipRanks are 81% Bullish, compared to a sector average of 70%.
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