Amazon Enables Shopping Via Twitter … But Who Cares?

This effort will do little to push the needle for AMZN or TWTR

   
Amazon Enables Shopping Via Twitter … But Who Cares?

Amazon (AMZN) and Twitter (TWTR) are both in the news today regarding plans to unroll a new “social shopping” program.

amzn Amazon Enables Shopping Via Twitter ... But Who Cares?The idea is that Amazon.com shoppers can add items to their AMZN shopping carts simply by replying to product tweets with the hashtag #AmazonCart. This won’t move the user out of Twitter or mess with their social media experience, but the next time they visit Amazon, the desired item will be waiting in their virtual cart to check out.

It’s an interesting idea, and one TWTR stock investors have probably been expecting.

Back in January, Tom Taulli reported that Twitter was looking for a piece of payments company Stripe as a way to integrate the shopping and social experiences. And besides, Twitter earnings were pretty nasty, and it’s about time the company starts thinking seriously about how to make more money as its user base shows signs of flat-lining.

But will #AmazonCart work, and will it drive value for AMZN stock or Twitter? And does this hint at a new opportunity for social companies including Facebook (FB) and privately held startup Pinterest that are looking to build a better “monetization” structure?

Right out of the gate, it’s impossible to know. But one thing is for certain: Amazon and Twitter are both in trouble, with AMZN off more than 20% since Jan. 1 and TWTR stock down more than 30% year-to-date … so investors are looking for anything to give them hope.

Sadly, since #AmazonCart is a small-scale effort and largely unproven, Wall Street shouldn’t expect much from TWTR or AMZN thanks to this news.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/amzn-twtr-stock-amazoncart/.

©2014 InvestorPlace Media, LLC

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