Twitter stock jumps on news of promoted tweets syndication scheme
Shares up 6% as microblogging firm announces partnerships with third-party apps, websites
Twitter stock leapt more than 6% yesterday on news that the microblogging service would include promoted tweets on third-party apps and websites, Reuters reported.
By forging partner relationships and broadening its ad distribution model beyond its 248m active users, Twitter hopes to extend its reach as growth in its user base stagnates.
"For the thousands of brands already advertising on Twitter, these new partnerships open a significant opportunity to extend the reach of their message to a larger audience," Twitter said in a blog post.
The first partners Twitter has signed for the scheme are news app Flipboard and Yahoo Japan.
Twitter's flagging user base has spooked investors throughout 2014, pushing the company's share price down 40% from a 52-week high of $67.24. It is expected to announce its fourth-quarter results tomorrow.