Twitter, Inc. TWTR is testing a new feature called Notes to allow lengthier tweets.
Commenting on the development, Loup Funds Managing Partner Gene Munster, a noted Apple, Inc. AAPL analyst, said this would be the “most significant update” since the social media platform increased the number of allowed characters from 140 to 280 in 2017.
Twitter could be losing its unique selling proposition, the analyst suggested.
“Twitter is slowly losing its main differentiation from mainstream media and blogging sites was that it forced users and journalists to condense thoughts into a few sentences,” Munster said.
This experimentation could be a risky move, the analyst said. All the same, it is worth taking, given Twitter has a growth problem, he added.
“In other words, it’s a bigger risk for the company to maintain the status quo.”
Twitter has been seeing a slowdown in user growth amid competition and other secular headwinds. Additionally, the company is left to contend with the uncertainty around its proposed acquisition by Tesla Inc. TSLA CEO Elon Musk.
Price Action: Twitter shares closed Wednesday’s session down 0.98% at $38.53, according to Benzinga Pro data.