FM trader Josh Brown feels that the increased user base and improved engagement score are key positives for Twitter Inc. (NYSE:TWTR), while Tim Seymour debates the value in Twitter Inc. (NYSE:TWTR) as a stock on CNBC.
Josh Brown is bullish on Twitter Inc. (NYSE:TWTR) and feels that the stock needs to be evaluated on the basis of monthly average users and revenue per thousand timeline views, rather than the traditional revenue earned and stock valuation method. He added that Twitter Inc. (NYSE:TWTR) has been performing well on both these metrics with 255 million monthly active users in Q1 as against 241 million users in Q4. The social media messaging platform had witnessed 652 million tweets related exclusively to the football world cup. Brown said that this was good engagement and augurs well for Twitter Inc. (NYSE:TWTR). Additionally, Anthony Noto, the new CFO, brings with him intimate knowledge about the business as well market acumen.
However, Tim Seymour said that Twitter Inc. (NYSE:TWTR) had displayed a “decelerating” trend.
“They were 45% a year ago, they were 25% in the first quarter and they are going to be lower in the second quarter. And this is a big deal until they can roll out either new products or the ad monetization really shows,” he said.
The World Cup is a special event, so counting the engagement that was created during that period is irrelevant. Further, he added that the stock had rallied over 20% till now and was five times more expensive than Facebook Inc. (NASDAQ:FB). However, the company was not growing at the same pace and he did not see much value in the stock.
Twitter Inc. (NYSE:TWTR) has an average engagement time of under three minutes per user as against Facebook Inc. (NASDAQ:FB)’s forty minutes or above of engagement. The extent of engagement is directly proportional to the opportunity to monetize, which is not much in Twitter Inc. (NYSE:TWTR)’s case.