Does a New CFO and Mobile Advertising Solve the Problems at Twitter, Inc.?
The recent hiring of a rock star Wall Street banker as the new CFO of Twitter (NYSE: TWTR ) has investors buzzing about the company. After a rough spring that saw the stock collapse to lows around $30 following the IPO ramp to $75, Twitter finally stabilized and gained some legs in the market. On top of the big hire, Twitter also continued its spree of buying up mobile advertising firms, including the recent purchase of TapCommerce.
Social media companies that started off as free-to-use services without advertising face a major dilemma: how to appropriately monetize user traffic without alienating the user base. Facebook (NASDAQ: FB ) dealt with these issues, and as a result the company made a recent move to purchase an advertising technology firm in order to improve ads on the site. But the ultimate question is whether these social media giants are doing enough to attract users with site enhancements focused on advertising efforts.
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