Could This Investment Help Twitter Further Monetize Its Massive User Base?

It appears Twitter Inc TWTR is making moves to enhance its advertising capabilities on its social media platform. 

What Happened: Twitter announced that it took a minority stake in digital advertising company Aleph on Tuesday. 

Twitter's investment will be used to support Aleph's educational efforts, which include building an educational tech platform, education on digital advertising, training and certification and efforts to create new digital jobs, specifically in underserved markets. 

"We are honored to have Twitter as an investor in Aleph," said Gastón Taratuta, founder and CEO of Aleph. "Their investment is a clear endorsement of our efforts to educate a new generation of digital professionals equally around the globe."

Why It Matters: A majority of Twitter's revenue comes from advertising. During the company's most recent earnings report, Twitter said revenue totaled $1.28 billion, with $1.14 billion coming from advertising. 

The Aleph investment follows Twitter's sale of MoPub to AppLovin Corp APP. The company announced that it closed the MoPub sale on Jan. 1 for $1.05 billion in cash. MoPub focuses on providing monetization solutions for app developers.

"With the sale of MoPub completed, we continue to concentrate our efforts on enhancing ads across our platform," Bruce Falck, GM of revenue products at Twitter, said last week. "Our goal is to deliver faster growth in key areas and accelerate our product development."

From Last Week: Here's How Much You Would Have Made Owning Twitter Stock In The Last 5 Years

Twitter seems to be ramping up said growth efforts with its investment in Aleph. 

Aleph is acting as Twitter's exclusive advertising partner in 74 countries. The company helps Twitter monetize its user base in emerging countries.

Aleph provides local sales and support teams, proprietary technology that helps maximize ad spend and cross-border payment solutions.

"With a diverse set of capabilities, Aleph has supported our business globally, both as a sales and technology partner. This investment is a natural evolution in our relationship with Aleph," said Sarah Personette, chief customer officer at Twitter.

TWTR Price Action: Twitter has traded as low as $38.22 and as high as $80.75 over a 52-week period.

The stock was up 2.13% at $40.82 Tuesday afternoon. 

See Also: Analyst Ratings For Twitter

Photo: Stock Catalog from Flickr.