Twitter Inc (NYSE:TWTR) is a Buy after its pullback on Monday, Robert Peck said in a recent interview with the Fast Money traders on CNBC.
The Fast Money team at CNBC was discussing the decline in technology stocks on Tuesday as a result of selloffs as people await impending corporate earnings reports. Twitter Inc (NYSE:TWTR) and Pandora Media Inc (NYSE:P) declined 7% each on Tuesday while Facebook Inc (NASDAQ:FB) and Netflix, Inc. (NASDAQ:NFLX) each declined over 3% as the technology bore most of the declines after selloffs.
Nonetheless, Peck is optimistic about Twitter Inc (NYSE:TWTR). He explained that the selloff may also be attributed to the company’s report about its user base which did not reach what was expected by observers. This may have affected the buy side, the SunTrust Robinson Humphrey executive said. Nonetheless, he explained that the company has assets that are strong. He said:
“MoPub, we think, is the underappreciated asset of Twitter. We had a conference call for investors a couple of weeks ago, the one who helped call the mobile app installs for Facebook, and he called MoPub for Twitter, saying this is going to be huge for them, several hundred million dollars for them as we look at over time here. It’s one of the rare mobile [advertising]networks you have, Facebook and Google being the others. That layer of data they have is extremely valuable to the advertisers.”
Furthermore, Peck said that when they upgraded the stock at $34, their call was that Twitter Inc (NYSE:TWTR) does not need to be Facebook which has over a billion users. He said it can be a small user base. He noted that right now, the company’s monetization level is much lower than Facebook. So if the company improves units and pricing alone, they could make the company and the stock work, he said. Furthermore, when asked whether Twitter is now a Buy because of the pullback this week, he said yes. Learn other reasons Peck gave in the video below.
Twitter Inc (NYSE:TWTR) shareholders includes Joe Dimenna’s Zweig Dimenna Partners which reported, by the end of March, 25,000 shares in the company. Matthew Hulsizer’s Peak6 Capital Management which reported 15,808 shares also by the end of March.