Tag: Twitter Inc (NYSE:TWTR)

Facebook Inc (NASDAQ:FB) EU: Will The Social Media Oblige To The Code of Conduct

facebook

The major tech companies are under pressure from the European Commission to be more proactive in curbing hate speech and provocation to terrorism. Facebook Inc (NASDAQ:FB) EU is one of the tech firms alongside Twitter Inc (NYSE:TWTR), Alphabet Inc (NASDAQ:GOOGL) Google’s YouTube and Microsoft Corporation (NASDAQ:MSFT) that the European governments are looking up to. They have been asked to put their acts together in the code of conduct or face the possibility of laws.

The order comes in the midst of heightened racial tensions and national security concerns.  Germany has particularly been in the spotlight because of the ongoing refugee crisis, which has sparked a chauvinistic backlash. Apparently, the country’s Justice Minister Heiko Maas points out that Facebook should be held legally responsible for any speech published to its platform.

Facebook EU: The tech giants have not been submissive to the code

It is a requirement that all the major US technology companies sign a code of conduct including Facebook EU in an effort to fight online hate speech.  The firms are also required to agree to be part of a strengthening partnership with civil society organizations. However, a report commissioned by EU Justice Commissioner Vera Jourova indicates that the tech giants have not satisfactorily obligated to the code.

A majority of them have been struggling to comply with a voluntary code of conduct.  Jourová says, “If Facebook, YouTube, Twitter and Microsoft want to convince me and the ministers that the non-legislative approach can work, they will have to act quickly and make a strong effort in the coming months.”

The rapid spread of fake news online

There have been serious concerns over the online spread of racist content, which is primarily targeting refugees in Europe. Facebook has been one of the biggest victims.  According to Jourová, social media companies need to live up their mandate of sharing responsibility in regards to online radicalization, fake news or illegal hate speech.

Apparently, Mark Zuckerberg, Facebook’s CEO and COO Sheryl Sandberg have been alleged to break national anti-speech laws. As a result, prosecutors in Munich launched an inquiry into these allegations. Nonetheless, it remains to be seen how committed Facebook EU is to its obligation.

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Stock to Follow Twitter Inc (NYSE:TWTR)

Article: Several analysts have recently weighed on Twitter Inc (NYSE:TWTR), issuing notes to investors. Doug Anmuth of J.P. Morgan reiterated their Buy rating on the stock yesterday with a $67.00 price target, or 77.06% upside to the last closing price. According to Tip Ranks, Doug Anmuth is ranked 19 out of 3611 analysts. The stocks he covers yield an average of 24.10% growth in the one year following his recommendations.

Robert Peck of SunTrust also released a note to investors 5 days ago reiterating the firms Hold stance on Twitter.

“Twitter filed its 8-K updating some of the terms surrounding the TellApart acquisition. The deal is valued at ~$533M, making this its largest acquisition to date (MoPub ~$350M and TapCommerce ~ $100M). The deal consists of 12.6M shares of Twitter stock price at $42.27, the closing price on 4/28. No further details on management contracts, earn outs, cash component or cash acquired was disclosed. Our capital structure points to ~737M fully diluted shares, which would mean the deal is ~1.8% dilutive in its current form. We reduce our target price by $1 to $44 to account for the dilution. Our price is based on 35x 2016E EV/EBITDA and 9x EV/Revs.”

Peck also added, “We are surprised by the lack of disclosure on the earnings call that Twitter had made such a sizable acquisition (~$550M). Further, we question what the acquisition (along with the Double Click deal) means for the current state of Twitter’s ad tech stack. Lastly, we think the size and significance further weighs on management and would not be surprised to see shareholder frustration voiced about execution and disclosure.”

According to TipRanks.com Peck ranks 330 out of 3611 analysts and has an average one year return of 12.0% on the stocks he covers with a 59% success rate.

Another analyst at Blake Harper Wunderlich has a Neutral stance on the stock. AN3 issued a note 5 days ago with a Hold rating on the stock and $40.00 price target or 5.70% upside to the last closing price. According to Tip Ranks, Blake Harper is ranked 3517 out of 3611 analysts. The stocks he covers yield an average return of -8.70% in the year following his recommendations.

“Twitter, Inc. (TWTR) reported 1Q15 revenues 4% below and adjusted EBITDA 8% above consensus estimates, with revenues affected by weaker-than-expected results from its direct response ad products and currency exchange headwinds. Without fx headwinds, the company would have posted revenue growth at the top of its guidance range and just below the consensus. Monthly active users (MAUs) were inline at 302 million, an addition of 14 million, although the company has gotten off to a slower start in April and should see slower MAU growth in Q2. We view the DoubleClick partnership as a longer-term driver of the business, especially for stronger attribution of conversions across the web and offline. We are lowering our estimates given the guidance and also lowering our price target to $40 from $50.”

 

 

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Stock in Spotlight: Twitter Inc (NYSE:TWTR)

[Reuters] Twitter Inc (NYSE:TWTR) slowing revenue and user growth has raised further doubts about its ability to entice advertisers to spend more on its platform – at least in the near term.Shares of the micro-blogging website operator, which warned that user growth was off to a slow start in April, fell 5.2 percent to $40.07 in early trading. Twitter’s market value fell by a fifth, or about $5 billion, after its disappointing first-quarter results were released in error an hour ahead of schedule.

At least 15 brokerages cut their price targets on the stock.”…Simply put, advertisers aren’t willing to bid up or spend as much with TWTR as expected,” RBC analysts said in a research note, cutting their price target to $$47 from $54. Advertising has been seen as a growth driver for Twitter, but the RBC analysts said the company appears to have “hit an ROI (return on investment) wall with its advertisers.”

Twitter’s ad revenue per monthly average user has now decelerated for three consecutive quarters, and its outlook implied a further slowdown in the second quarter.Analysts had expected the company’s new advertising products, particularly its app install ads, to start driving growth in the latest quarter. That didn’t happen as much as expected.

Analyst Watch

Of the 30 analysts offering recommendations on Twitter Inc (NYSE:TWTR), the consensus rating is a Hold. 16 analysts rate the stock as a Buy, 13 have issued Hold ratings while 1 have issued Sell ratings. The one year price target on a consensus basis is $55.93, or around a 32.32% upside to a recently traded price. The most bullish analyst has their estimate at $67.00, which the most bearish sees the stock going to $43.00.

Several top rated analysts according to TipRanks.com which cover the stock include Ronald Josey at JMP Securities and Mark Mahaney at RBC Capital. Mark has a Hold rating on the stock with a price target of $54.00.  Ronald has a Buy rating with a price target of $52.00.

Some similar stocks include Google, Facebook Inc and Meetme. Analysts have a consensus Moderate Buy rating on Google, a Strong Buy rating on Facebook Inc and a Strong Buy consensus rating on Meetme.

Company Profile

Twitter Inc (NYSE:TWTR) is a global platform for public self-expression and conversation in real time. It is a real-time platform, where any user can create a Tweet and any user can follow other users.Viewers can see photos, videos and conversations directly in Tweets to get the whole story at a glance, and all in one place. It offers Twitter apps for phones, tablets and computers. It generates its advertising revenue primarily from the sale of its three Promoted Products: Promoted Tweets, Promoted Accounts and Promoted Trends. Its users include millions of people from around the world, as well as influential individuals and organizations, such as government officials, celebrities, athletes, journalists, sports teams, media outlets and brands. In April 2014, it acquired Gnip Inc. In June 2014, Twitter Inc acquired Namo Media Inc. Effective August 1, 2014, Twitter Inc acquired Lectorius Inc. In August 2014, New York REIT Inc. announced the acquisition of Twitter’s headquarters.

 

 

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Trading Insights on Twitter Inc (NYSE:TWTR)

[Benzinga] Twitter Inc (NYSE:TWTR) shares were trading lower by $1.40 at $46.19 in Tuesday’s session. The only relevant news on the issue is that the company has acquired live-video startup Periscope, a startup still in beta that allows users to stream live video from their phone.

Twitter has been stuck in very tight trading range from $45.57 to $50.01 since posting a strong Q4 beat on February 5. That propelled shares from $41.26 to $48.01 the following session. The continuation rally ended on February 26 when it peaked at $50.01. Despite a rash of price target increases from Wall Street analysts, it has been unable to clear that major resistance level.

Analyst Watch

Of the 27 analysts offering recommendations on Twitter Inc (NYSE:TWTR), the consensus rating is a Hold. 13 analysts rate the stock as a Buy, 13 Hold while 1 has issued Sell ratings. The one year price target on a consensus basis is $51.67, or around a 12.72% upside to a recently traded price. The most bullish analyst has their estimate at $67.00, which the most bearish sees the stock going to $26.00.

Several top rated analysts according to TipRanks.com which cover the stock include Michael Graham of Canaccord Genuity and Doug Anmuth of J.P. Morgan. Anmuth has a Buy rating on the stock with a price target of $67.00.  Michael has a Buy rating with a price target of $56.00.

Some similar stocks include Google, Facebook Inc and Meetme. Analysts have a consensus Moderate Buy rating on Google, a Strong Buy rating on Facebook and a Strong Buy consensus rating on Meetme.

Company Profile

Twitter Inc (NYSE:TWTR) is a global platform for public self-expression and conversation in real time. It is a real-time platform, where any user can create a Tweet and any user can follow other users.Viewers can see photos, videos and conversations directly in Tweets to get the whole story at a glance, and all in one place. It offers Twitter apps for phones, tablets and computers. It generates its advertising revenue primarily from the sale of its three Promoted Products: Promoted Tweets, Promoted Accounts and Promoted Trends. Its users include millions of people from around the world, as well as influential individuals and organizations, such as government officials, celebrities, athletes, journalists, sports teams, media outlets and brands. In April 2014, it acquired Gnip Inc. In June 2014, Twitter Inc acquired Namo Media Inc. Effective August 1, 2014, Twitter Inc acquired Lectorius Inc. In August 2014, New York REIT Inc. announced the acquisition of Twitter’s headquarters.

 

Twitter Inc (NYSE:TWTR), TWTR, analysts recommendations, earnings, EPS, analyst ratings

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Updates and Insights on Twitter Inc (NYSE:TWTR)

Article: Several analysts have recently weighed in on Twitter Inc (NYSE:TWTR), issuing notes to investors.  Michael Graham of Canaccord Genuity reiterated their Buy rating on the stock 2 days ago with a $56.00 price target, or 20.82% upside to the last closing price.  According to Tip Ranks, Michael Graham is ranked 98 out of 3525 analysts.  The stocks he covers yield an average of 18.5% growth in the one year following his recommendations.

Doug Anmuth of J.P. Morgan also released a note to investors 2 days ago reiterating the firms Buy stance on Twitter.

“We believe Twitter’s new native video product that allows users to capture, edit, & share videos of up to 30 seconds could be a significant driver of MAU & engagement growth given Twitter’s: 1) real-time content platform; & 2) high penetration of influential people & org’s (i.e., celebrities, politicians, news outlets, etc.) that drive a considerable amount of content on Twitter. We think native video is an important step as Twitter continues to evolve beyond a text-based 140 character tweet platform into something much more engaging. We also believe products such as Instant Timeline & While You Were Away will increase engagement, & we will see further efforts to improve curation on the platform.”

Anmuth also added, “Twitter’s 2014 ad revenue per avg. MAU of $4.75 is considerably lower than those of online ad peers Google (~$38) & Facebook (~$9). Relative scale is a factor, but Twitter’s ad efforts remain early-stage, & we believe there is significant headroom from the current ~1.3% ad load & sub-100k advertisers. Twitter is already the fastest growing company in our coverage universe & we believe EBITDA margins can expand from 21.4% in 2014 to 34.6% in 2018.”

According to TipRanks.com Anmuth ranks 11 out of 3525 analysts and has an average one year return of 26.6% on the stocks he covers with a 73% success rate.

Another analyst at Argus Research has a Bullish stance on the stock.  Jim Kelleher issued a note 1 month ago with a Buy rating on the stock and $55.00 price target or 19.28% upside to the last closing price.  According to Tip Ranks, Kelleher is ranked 251 out of 3525 analysts.  The stocks he covers yield an average return of 17.0% in the year following his recommendations.

“The TWTR shares represent investment in a growth story and as such traditional valuation metrics are of limited use, particularly in comparison with more mature peers. TWTR is also a volatile stock, having declined sharply on disappointing 3Q14 results and bouncing around more than the broad market or technology universe.  Nonetheless, Twitter has attained non-GAAP profitability much more rapidly than we initially anticipated. At current prices, TWTR trades at 97.6-times our 2015 non-GAAP EPS estimate and at 63.0-times our 2016 non-GAAP EPS projection; its average multiple for 2014 is around 164-times non-GAAP EPS..”

Twitter Inc (NYSE:TWTR), TWTR, analysts recommendations, earnings, EPS, analyst ratings

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