Twitter Inc (TWTR) Can Increase Its Revenue Using 500 Million Logged Off Users: Ross Sandler


Twitter Inc (NYSE:TWTR) is getting good ratings from the market experts. In a recent development, Deutsche, Nomura and Evercore Partners have given a Buy rating to Twitter Inc (NYSE:TWTR)’s stock.  Ads business of Twitter is the common factor that is playing an important role in the stock surge. Evercore Partners analyst Ken Sena set the price target up to $65 from $55 for Twitter and gave a buy rating. The recent integration with MoPub, a high possibility of increase in ads revenue and Twitter Inc (NYSE:TWTR)’s potential to deliver high return on investment (ROI) are some of the paramount factors that convinced Sena to increase Twitter Inc (NYSE:TWTR)’s status in his report.

Twitter, is Twitter a good stock to buy, Q2 2014, Debra Aho Williamson, Paul Sweeney

Sena said that although he has not increased the overall estimates for Twitter Inc (NYSE:TWTR) in 2015 and 2016, the margin estimates are still 30% above the Street.

Deutsche’s Ross Sandler has set the price target for Twitter at $60 and gave a Buy ranking to the stock. He thinks that although Twitter Inc (NYSE:TWTR) is trailing a forward Price-to-Sales ratio of 17.0, he  will go with 5.7x 2017 sales. Sandler sees a huge potential in unique logged off users of Twitter Inc (NYSE:TWTR). A logged off user of Twitter is the one who only logs into Twitter one or two times daily. A logged in user checks Twitter six to seven times daily. There are around 500 million logged off users and if Twitter succeeds in getting their engagements, the revenues can get a huge boost.

Equities research analysts at Nomura also gave a Buy rating for Twitter Inc (NYSE:TWTR) and set a price target of $55. Twitter Inc (NYSE:TWTR) has reached this stock price in the market and currently trading at around $55.

John Thaler’s Jat Capital Management owns about 7.33 million shares of Twitter Inc (NYSE:TWTR).

Suggested Articles:

Top Selling Comic Book Issues

Largest Beer Companies