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The Google-Twitter Deal Is A 'Win-Win' For Both Parties, Wedbush Analyst Says

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The Google-Twitter Deal Is A 'Win-Win' For Both Parties, Wedbush Analyst Says
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Twitter Inc (NYSE: TWTR) and Google Inc (NASDAQ: GOOG) have reportedly signed a new agreement that could bolster both companies.

The search engine giant is expected to begin showing tweets in Google search results later this year.

"I think it's a win-win for both," Wedbush analyst Shyam Patil told Benzinga. "Google search obviously is relevant given that it's able to integrate that kind of content. It's very valuable when people are doing searches."

Patil said the deal would help Twitter by ensuring that its content is "well distributed."

"[Twitter executives] have been talking about the monetization of logged out users," Patil added. "This can essentially be one way of doing that as tweets [which] frequently show up in searches."

Related Link: Facebook Vs. Twitter: Who Will Win The Battle For Sports Video?

Too Many Tweets?

On Twitter, consumers expect to get nothing but tweets when they enter a search query. They may not expect to see a large number of tweets on Google, but Patil doesn't expect this to be a problem.

"Google has done a great job of providing very relevant content in searches," he said. "I'm not expecting a major change. I think if you get tweets it will be because it's relevant. I don't think you'll get a ton of them. I think it will be well-presented."

For better or worse, users may not be given an option to avoid seeing tweets in their search results.

"I don't think you can control search results for the user, so I wouldn't expect the ability to turn tweets on and off," said Patil.

Attracting More Users

Finally, Patil spoke about the possibility that the Twitter/Google deal will attract more Twitter users. "It certainly can't hurt," he said.

"Who knows if it can help? I wouldn't necessarily bank on it leading to massive user growth. But every little bit helps."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Image credit: Public Domain

Latest Ratings for GOOG

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Jul 2018Raymond JamesMaintainsOutperformOutperform
Jul 2018Cowen & Co.MaintainsOutperformOutperform
Jul 2018Cowen & Co.MaintainsOutperformOutperform

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