Twitter is accumulating more and more Wall Street analysts support.
The social media company, which is in its third year of restructuring efforts, was upgraded by at least six analysts after rating third-quarter earnings better than expected last October. This helped the company's share price rise more than 40%.
On Monday, Victor Anthony, an analyst with investment firm Aegis Capital, upgraded Twitter shares from "selling" to "buying." He said Facebook's recent decision to reduce content from businesses and news organizations, highlighting the content of users' friends and family members, may help to make Twitter more important to the media and businesses.
Daniel Ives, chief strategy officer at GBH Insights LLC, agreed that Twitter now has a unique opportunity to win more business from advertisers and publishers.
"Facebook is still a monster, but publishers have to hedge their bets, at least slowly back to the Twitter platform," Avis said.
This wave of optimism is significant for Twitter stock prices. Just nine months ago, the stock remained in a semi-permanent state, hovering around $ 14.01 in May 2016. On Friday, Twitter shares fell 1.58% to $ 23.66, although still below the $ 26 issue price, but has risen significantly from nine months ago. Analysts said Twitter's appeal to investors and potential strategic buyers has increased as advertisers become more bullish on the platform and user activity has increased.
Twitter has long been favored by journalists, entertainers, athletes and politicians as an important venue for them to comment on news and characters. As CEO of Twitter, Jack Dorsey's strategic focus has been to make Twitter the destination of a wider audience of current events. To this end, he promoted Twitter and news media and sports alliance reached a video streaming media cooperation. But this did not help Twitter beyond Facebook. According to a Pew Research survey, 45% of Americans get news through Facebook, compared to just 11% on Twitter.
Last week, Richard Houghton, an analyst at Hongqiao Trust & Investment Group, raised his target price for Twitter from $ 25 to $ 30, saying users are using Twitter more frequently and spend less time Increasing. This is partly because, he said, Twitter improved the algorithm by first showing the tweets most relevant to the user. Susquehanna Financial Group analyst Shyam Patil recently said Twitter's improvement in video-on-air advertising is expected to make the company "a surprising 2018 performance".
However, not all analysts agree that Twitter's performance troubles are over.
"Things are going in the right direction for them, but essentially the company does not differ from the one-year-old stock price of only about $ 17," said James Cakmak, analyst at Monness Crespi Hardt & Co. )Say. His rating on Twitter stock is "held".
Vertical Group, an investment company, recently started tracking Twitter shares, giving it a rating of "Sell" and said there are currently no signs that Twitter is accelerating.
Despite its 330 million monthly active users, Twitter accounts for only a fraction of the digital advertising market compared to Facebook and the company's 2 billion monthly active users. BLKBOX, an advertising creative company whose clients include Samsung Electronics and Covergirl, Inc., whose founders disclosed that their customers are not planning to switch their advertising budget significantly from Facebook to Twitter.
Another hurdle to Twitter is that it is considered a hub of online spray, harassment and fake news. Last year, Twitter was criticized for having trouble with the system it used to verify the authenticity of its users after being criticized for backing up the Weber and white supremacists. At the end of last year, news announcer Anderson Cohen said on CNN that he basically had given up on Twitter because he thought the app was "toxic."