Is Twitter's Monetization Strategy Improving?

While
Twitter IncTWTR
is set to release 2Q earnings later in the week, analysts at Cantor Fitzgerald are expecting to see improvements in Twitter's monetization strategy, despite seeing no growth in monthly active users or engagement figures.

Cantor Fitzgerald is expecting Twitter to release results and future guidance in line with analyst's estimates, with revenues coming in at $602.1 million, representing a 19.8 percent increase year-over-year.

The company is expecting Twitter's monetization growth to remain strong due to its lower advertising price point relative to competitors Facebook Inc FB and Google (Alphabet Inc GOOG GOOGL).

Beyond Thursday Night Football

Cantor Fitzgerald also sees a high upside in Twitter's new strategy to stream live events with its new NFL deal set to take place this upcoming season.

Twitter already tested out live-streaming with Wimbledon earlier in the month. Live-streaming events "could help Twitter pivot into more event-driven opportunities to grow users/engagement," said Cantor Fitzgerald. Twitter's deal with the NFL cost the company a reportedly $10 million to stream 10 NFL games for free.

Related Link: Twitter Wins Streaming Rights For NFL's Thursday Night Game

Twitter was not even the highest bidder to live-stream the NFL games, showing how important the platform still is for live events and the potential its partnership with the NFL has to drive growth on both ends.

The company has been on a roll securing live-streaming deals across several sports and just announced a partnership with the MLB and NHL to stream one game per week from both leagues.

Twitter has also struck similar media partnerships recently with the NBA, Pac-12 Networks and CBS Corporation CBS's CBS News.

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Posted In: Analyst ColorEarningsNewsGuidancePreviewsSportsAnalyst RatingsTechTrading IdeasGeneralCantor FitzgeraldCBSlivestreamingMLBNBAnflNHLPack-12Wimbledon
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