Twitter is 'indispensable' to the economy, VC says

Twitter's evolving role in connecting companies and consumers has made the platform vital to the global economy, venture capitalist Chris Sacca said Wednesday.

"I think it's becoming clearer and clearer that Twitter is just an indispensable part of, not just the media landscape, but the economy at this point," the founder and managing director of Lowercase Capital and an early Twitter investor said on CNBC's "Squawk Alley."

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Sacca maintained a bullish outlook on the social network even as its stock shed about 43 percent last year. Twitter shares have almost regained those losses this year—floating 40 percent higher—but were trading more than 3 percent lower Wednesday as the market pulled back.

Chris Sacca, Lowercase Capital
Noah Berger | Bloomberg | Getty Images
Chris Sacca, Lowercase Capital

On Tuesday, Sacca took to Twitter to say that investors had finally started to notice the company.

On Wednesday, he contended that Twitter has become a "true multimedia company." Sacca said that video plays and photo engagement on the platform have opened new ad revenue streams.

He added that Twitter's forthcoming live streaming app—called Periscope—will only increase engagement and revenue. Sacca uses a beta version of Periscope and recently streamed a funeral for his child's pet fish, which Twitter users including NBA star Kobe Bryant watched.

"People see Periscope and they want to use it," Sacca said.

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Twitter's monthly active user, or MAU, growth in recent quarters has partly fueled investor concerns. In its most recent financial results reported last month, Twitter's user growth fell short of Wall Street expectations.

Facebook's photo-sharing app Instagram has also surpassed Twitter in the metric.

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Sacca played down the trend, saying Twitter's reach goes "well beyond" monthly active users.