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Advertising works on Twitter; RBC boosts price target

  • "A substantial 40% of Twitter (TWTR) advertisers reported improving ROI over the last six months and 40% have also increased their Twitter spend," says RBC Capital, upping its price target on Buy-rated Twitter to $60 from $33.
  • 59% of respondents plan to increase ad spend with Twitter over the next twelve months, says the team, while only 4% plan to decrease.
  • Shares +1.2% premarket to $56.
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Comments (8)
  • 81george
    , contributor
    Comments (295) | Send Message
     
    Apparently RBC cap's ace internet analyst Mark Mahaney bumped the price. The same dude gave a price target of 33 a month ago. What significant happened over the month other than buying frenzy and short sqweez? He is not an ace he is a weathercock. TWTR will be back to 30 yjis time next year.
    13 Dec 2013, 08:47 AM Reply Like
  • 81george
    , contributor
    Comments (295) | Send Message
     
    Apparently RBC cap's ace internet analyst Mark Mahaney bumped the price. The same dude gave a price target of 33 a month ago. What significant happened over the month other than buying frenzy and short sqweez? He is not an ace he is a weathercock. TWTR will be back to 30 yjis time next year.
    13 Dec 2013, 08:47 AM Reply Like
  • mgpagan
    , contributor
    Comments (134) | Send Message
     
    I'm inclined to agree George. Buying Twitter at near $60 looks highly risky. It's loss making, hasn't got a deep moat stopping competition and its users might melt away like snow. The price action looks like the result of a limited number of shares available and too many buyers chasing them. It will be interesting to see what happens after Q4 results and the expiration of the first stock lockup. There's a fever about Twitter that's reminiscent of the hype about .com stocks in 1999.
    13 Dec 2013, 10:20 AM Reply Like
  • cking6178
    , contributor
    Comments (38) | Send Message
     
    I am long $TWTR, got in around $41, and I agree with your thoughts...I wouldn't get in at these prices...There will be a retracement, the question is when....Long term, $TWTR is a viable business....remember, at the time, people didn't think GOOG could successfully (and consistently) monetize their searches...your Buffet reference doesn't hold in this instance, as Buffet only invests in companies he understands - thus his thesis only holds for companies he understands...can another firm come along and challenge TWTR, sure...but TWTR has the name/brand recognition & unless the user experience starts to deteriorate, it will be hard to take their marketshare...just my 2 cents...cheers!
    13 Dec 2013, 01:26 PM Reply Like
  • FinancialTailor
    , contributor
    Comments (29) | Send Message
     
    This analyst is a great indicator of the current stock price.
    13 Dec 2013, 10:55 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1472) | Send Message
     
    If you ask him whether the turn signal is on, he will say "it's on, no, its off, wait, its on, wait, its off again..."
    13 Dec 2013, 08:18 PM Reply Like
  • toosmarttofail
    , contributor
    Comments (611) | Send Message
     
    All the smart money was waiting o the sidelines for a better entry point, if I recall.

     

    This stock could go anywhere. It's priced by emotion. I wouldn't call Twitter a great advertising medium. Great for them, maybe, but it causes companies to spend for that extra layer of internet.

     

    If people bypassed search engines and social media advertising to make their purchases, stuff would be cheaper. These aggregators are sucking money out of the entire internet, and giving very little back. They are black holes.
    14 Dec 2013, 04:10 AM Reply Like
  • foodforthought
    , contributor
    Comments (225) | Send Message
     
    http://bit.ly/Jwqvtt

     

    I don't see why TWTR should be trading (even with short covering!!!) more than 2x the EV/Sales metric of FB.

     

    EV/2014 Sales (highest estimates):
    21.3x - TWTR
    9.3x - FB

     

    Assuming 2x, the multiple for TWTR should have been 18.6x, implying 12-13% correction from current levels for a current stock price of ~$52.
    15 Dec 2013, 07:42 PM Reply Like
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