Twitter Inc. (TWTR - Free Report) and Snap Inc. (SNAP - Free Report) are partnering with Fox Sports to provide coverage of FIFA World Cup 2018 to be held in Russia from Jun 15 to Jul 15.
Twitter announced in a blog post that a half an hour live show will be streamed on the platform on each match day from Moscow's Red Square. The show will be hosted by Rachel Bonnetta and feature top personalities like Rob Stone, Landon Donovan, Kate Abdo, Alexi Lalas and Fernando Fiore.
The show will also cover “match action previews, recaps and Twitter reaction as well as original segments produced by FOX’s team in Moscow” and will be available to the U.S audience via @FOXSoccer on Twitter.
Fox Sports mentioned that a Publisher Story featuring daily updates of the tournament will be produced by it exclusively for Snap’s messaging application, Snapchat.
Snapchat will also produce "Our Stories" that will cover video highlights of goals and other moments of the tournament provided by Fox Sports.
Why is the Partnership Important?
Twitter and Snapchat are trying to bring more video content to attract users. We observe that both the companies are struggling to expand their user base and increase revenues.
Twitter’s focus to boost user growth rate and engagement levels is evident from the fact that it is now exploring beyond news. Twitter has been focusing on "live" to turn around its fortunes. Live streaming has also resulted in an increase in tweet impressions.
Twitter had earlier mentioned that streaming deals will fuel a “long-term shift away from desktop video to premium mobile environments and we believe Twitter is well positioned to benefit from that shift.”
Notably, shares of Twitter have gained 39.2% in the past year, outperforming the industry’s 26.7% rally.
Snapchat is also having a hard time amid growing competition from other major social networks. Per a survey conducted by the investment firm Cowen, 96% of the 50 U.S. ad buyers surveyed preferred Snap’s arch rival Facebook Inc.’s (FB - Free Report) Instagram Stories, a blatant copy of Snapchat’s feature of the same name, for advertisements compared to just 4% who backed Snap Ads.
Analysts fear that the company’s growth opportunities could be dampened because of slowing growth in its user base as advertisers will no longer be attracted to the platform.
We believe this initiative of the company to woo audience and advertisers to its platform will help shares rebound. Notably, shares of Snap have lost 42.4% of their value since its listing date of Mar 2, 2017 against 21.1% growth of its industry.
Twitter has a Zacks Rank #2 (Buy) while Snap has a Zacks Rank #4 (Sell).
A better-ranked stock in the broader technology sector is NetApp Inc. (NTAP - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for NetApp is projected to be 11.3%.
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