Did Twitter Inc (NYSE:TWTR) Violate User Privacy?

Posted by Kristi Scott January 6, 2014 0 Comment 2117 views

Twitter Inc (NYSE:TWTR) stock jumped up by 2.22 percent during trading on January 3. With the latest market gains, the stock has reversed some of the losses it had suffered in a volatile week of trading last week. The micro blogging site boasts of a market cap of $38.31 billion and hopes to grow larger on the back of news that it is developing a new revenue stream by offering a video based platform for its advertisering customers to target its millions of users.

Twitter Inc Continues To Swing Up and Down

Twitter Inc (NYSE:TWTR) stock holders might have to get used to the continued volatility surrounding the stock, as it seems like any positive or negative news seems to impact the confidence investors have in this stock. The examples of past two weeks when the stock lost 16 percent of its market value in just two days of trading when rating agencies downgraded the stock and gained impressively when it announced video advertisement platform, serve as a barometer of things to come.

Is User Privacy Being Breached?

Hence looking out for news that might negatively impact the stock of Twitter Inc (NYSE:TWTR) in near future, one cannot ignore the growing concerns  around privacy and security issues of users on social media like Facebook Inc (NASDAQ:FB) and Goolge Plus, including Twitter. These well founded concerns around the security and the assuredness of privacy while using these social forums has been highlighted in the form of a legal court case that two Facebook users have lodged against the networking platform. This court case which got logged last week is about “technology companies rights or lack of it to read the personal communication of their users”.

Court Rulings Assumes Importance

The reason why the outcome of this court case and the new legal standards it will set around user privacy is important for Twitter Inc (NYSE:TWTR) is because, many of its current revenue models are dependent on the micro blogging site being able to data mine and drill into its user generated content. Any court obligated embargo on accessing user data content might put a spanner in Twitter Inc (NYSE:TWTR) revenue generation ability.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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