Twitter Inc (NYSE:TWTR) has enjoyed success due to its World Cup campaign and the 6.7 billion impressions of the World Cup hashtag definitely tells volumes of how successful it has been.
Todd Chaffee, Institutional Venture Partners in an intervention on CNBC yesterday stated that Twitter Inc (NYSE:TWTR) has a tremendous growth potential for a variety of reasons. He said that Twitter Inc (NYSE:TWTR) is his biggest stake and he is holding it for some time now.
He also said that his reason for holding shares of Twitter Inc (NYSE:TWTR) is the number of users the social media platform has today and the number of users it can have.
“Twitter has got 260 million monthly active users, it’s going to steadily march towards a billion users.”
Other than the number of users, Chaffee feels that Twitter Inc (NYSE:TWTR) is going to deepen the engagement with the users and become a more user friendly mainstream product compared to what is today. He said that the ad load is really light in Twitter Inc (NYSE:TWTR) which makes it a lot more user friendly. According to Chaffee, if the company just adds one more ad per timeline, it could double the revenue from ads. So he thinks that Twitter Inc (NYSE:TWTR) has got tremendous control on its financial profile. He feels that Twitter Inc (NYSE:TWTR)’s stock can go around $45 later this year and probably $50 next year.
Twitter has been on an upside for over four weeks now after the continued drop for over six months. The stock is currently trading above $40 mark. The stock is up by almost $10 in the last 30 days and is up 33% from the lockup period low and has shown tremendous resilience without any major news at all. However, analysts feel that it’s all going to depend on the next earnings report. They feel that the risk of trade is back and Twitter Inc (NYSE:TWTR) is a part of it.