Twitter was down more than 15% in afternoon trading in the stock market today, near 15 and at a two-month low.
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We’ll get to our Twitter stock recommendation shortly. “While live video content, especially NFL broadcasts, could attract new users, we think the video landscape will be more competitive for Twitter vs other social platforms like Snapchat, YouTube, and Facebook (and the NFL and other leagues will likely be looking for a big share of economics in a bidding situation)”, he added. And he has crafted changes to Twitter to make it easier for people, especially newcomers, to use.
Wall Street’s view of Twitter can be summed up in three words: Too little growth.
Prior to the earnings report, RBC Capital Markets analyst Mark Mahaney said there is a risk that the social network could be a “deteriorating asset”. Is Twitter Inc Dying? appeared first on InvestorPlace. And we want to make sure that is the best, not only for broadcasters, but for their fans.
He also dangled the possibility of acquisitions to reignite growth. It says the $204m it booked offshore, an increase of 39 per cent year-on-year, would have grown 46 per cent (roughly another $10m) if it had not been a stronger USA dollar. “We’re continuing to look for more diversity on our board as well”, he added.
The broker said it has now set a “Buy” rating on shares of Twitter Inc with a price target of 24.
Despite offering more options in advertising, brands didn’t switch over to the newer, pricier options as quickly as Twitter anticipated, Chief Financial Officer Anthony Noto told analysts Tuesday in a conference call.
“Revenue growth from SMB advertisers was once again the fastest, as we continue to focus on increasing the number of active advertisers we serve”.
Revenue from video ads on Twitter’s owned-and-operated sites almost tripled year-over-year in Q1.
As it relates to making money – Twitter missed revenue estimates for Q1 by $13 million – the company said it controls some of the video advertising for its Thursday Night Football live stream during the game, as well as pre-game and post-game. On average, equities research analysts forecast that Twitter will post $0.55 EPS for the current year.
Though it is cautious on Twitter’s user and engagement growth, it is positive on the company’s monetization ability.
The stock plunged even though Twitter managed to grow its monthly active users by approximately 310 million from 5 million in the first quarter of the year.
At least in the short term, however, analysts are not expecting such deals to right Twitter’s ship.
Analysts have criticized Dorsey, who is also the CEO of mobile payments company Square, for struggling to pull Twitter stock out of its slump and present a clear strategy for the company’s future. “To turn this around, Twitter needs to find something to encourage users to spend more time within its properties and break out of being a news broadcaster”.
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We’ve been doing live for ten years and we believe we have a leadership potential in it…we have a leadership position in it. But it’s not just about showing a live event, it’s also about hosting a conversation around a live event.
