It’s no secret that Twitter (NASDAQ:TWTR) underwent a major transition, as Jack Dorsey stepped down as its CEO and was replaced by Parag Agrawal in November of last year. The change put the loyal owners of TWTR stock at a crossroads: should they keep the shares or dump them?
It’s a valid question as Twitter’s social media website has developed a problematic reputation. To quote InvestorPlace contributor Dana Blankenhorn, it had become a “cesspool of anger”, causing some celebrities to abandon the platform.
As Agrawal took the helm at Twitter, he immediately faced the task of cleaning up the website. Meanwhile, alternative media platforms threatened, and continue to threaten, to steal market share from Twitter.
Thus, it makes perfect sense for Twitter, under its new leadership, to strike out in a new direction. If you’re a fan of non-fungible tokens (NFTs), then the (hopefully) new and improved Twitter should pique your interest, even if one celebrity businessman isn’t particularly pleased with it.
A Closer Look at TWTR Stock
Lately, it hasn’t been easy to stay the course with Twitter. To quote InvestorPlace contributor Mark R. Hake, Twitter had a “rough year” in 2021.
According to Hake, TWTR stock “started 2021 at $54.15 but closed at $43.22, representing a loss of 20.2% for the year.” Bear in mind, major market indexes like the Nasdaq and the S&P 500 posted strong returns in 2021.
In other words, Twitter let a lot of people down last year. But hey, it’s a new year, and maybe Twitter can turn over a new leaf.
But that hasn’t happened so far. As the “tech wreck” shook the foundations of the Nasdaq and S&P 500 in January 2022, Twitter’s loyal shareholders suffered substantial losses.
From around $43 at the beginning of the year to slightly under $34 this morning, TWTR stock shed roughly 18% of its value. That’s a sizable loss in just a few weeks’ time.
The level to watch closely now is $30. If there’s a breach of that price point, the buyers might capitulate and the sellers could completely take over.
You (Apparently) Asked for It
“Ready to show off your NFT? Follow these simple steps to connect your crypto wallet and let’s see your NFT PFPs!”
That’s a tweet from Twitter, or more precisely, Twitter Blue. The “PFPs” in that alphabet soup means profile pictures, we can presume.
This tweet was issued on Jan. 20, and by the next day, it had garnered over 7,400 likes and 2,700 retweets. So apparently, some folks are indeed “ready to show off” their NFT profiles.
Or at least, they seem to support the introduction of this feature on Twitter. The company alluded to strong demand with another tweet, saying, “You asked (a lot), so we made it. Now rolling out in Labs: NFT Profile Pictures on iOS.”
A Spambot Block Party?
And indeed, iOS users reportedly can showcase NFTs as their profile pictures if they’ve signed up for Twitter’s Blue subscription service.
Supposedly, this service connects these users’ accounts using the cryptocurrency wallets that hold their NFTs. Moreover, Twitter will display NFT profile pictures as hexagons in order to differentiate them from normal profile pictures.
For people who are into NFTs, this might be the greatest thing since sliced bread. For famous billionaire Elon Musk, though, it’s nothing to get excited about.
Reportedly, Musk called Twitter’s new feature allowing users to highlight their NFTs “annoying.”
“Twitter is spending engineering resources on this bs while crypto scammers are throwing a spambot block party in every thread,” Musk also declared.
The Bottom Line
It will be interesting to see who sides with Twitter on this issue and who takes up arms with Musk against what he sees as “spambot block parties.”
Is Musk jealous because Twitter is moving into NFTs? Or is Twitter rolling out a pointless feature while ignoring its bread-and-butter social media platform?
The answers to these billion-dollar questions may determine the fate of TWTR stock. In the meantime, stay tuned as I have a funny feeling that this won’t be the last we’ll hear from Twitter – and from Musk, as well – on this matter.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.