Here’s Why Twitter (TWTR) Stock Climbed After Their Google Deal Was Announced

Twitter (trading on NYSQ as TWTR) has had one hell of a week.

First, the social media giant penned a deal with Google which will give Google access to Twitter’s data stream, and allow Tweets to be discoverable as soon as they’re posted, according to the Wall Street Journal. Then, Twitter (finally) made commitments to do a better job of tackling abuse and trolls, as reported by Inquisitr.

Next, Twitter (TWTR) posted stellar revenue for the 4th quarter, with Business Insider saying that revenues were up 97 percent year over year from 2013. For those following along at home, that means revenues of $479 million, which crushed analyst expectations of $453.6 million.

Investors like what they’re hearing. According to Business Insider

“The stock was up 10.4 percent after Twitter’s earnings call ended.”

BI also reported that there were many questions about the Twitter/Google deal during the call. So here’s why discoverability of Tweets can make such a difference.

    • Right now, Twitter (TWTR) is something of a closed community. Sure, you can search Tweets from within Twitter, but a general Google search won’t show you what people are saying on Twitter about the most recent episode of Jane the Virgin or the Superbowl bet between The Chrises. Google getting access to Twitter’s stream could help Twitter feel more accessible to new users.
  • Business Insider also suggests that the Google search developments could help Twitter serve ads to logged out users, which could increase ad revenue.
  • Google does view tweets currently, but it does so by “crawling” the site, meaning that it’s slow. Since conversations on Twitter move so fast, slow might as well not exist, according to the Nasdaq report.

Thursday, The Street reported that shares for Twitter (TWTR) had increased to $42.29 per share in pre-market trading. Deutsche Bank analysts have set a $60 price goal for the stock.

Will you be looking to buy up shares of TWTR stock?