Twitter and Amazon Team Up on Cloud Infrastructure
Twitter (NYSE: TWTR) may be a leading social media platform, and this year, its stock has well outperformed the market. But despite both its notoriety and its recent share-price gains, the company hasn't done a great job managing its business.
Peers including Facebook (NASDAQ: FB) and Snap (NYSE: SNAP) are doing noticeably better than Twitter in terms of profit margins, which has led investors to ask what needs to be changed to close that gap. Their frustration has even attracted the attentions of activist investors that have pledged to help Twitter boost its profitability.
Recently, there have been signs that management is ready to make some of those changes. The latest was Twitter's announcement last week that it was expanding its relationship with Amazon (NASDAQ: AMZN). In its recent operational foray into the public cloud, it will use Amazon Web Services to improve the real-time experience for its users. This shift could both optimize Twitter's performance and save it some money on IT expenses.
Source Fool.com
