Down 24% yesterday due to the disappointing engagement/user growth metrics provided in its Q4 report, Twitter (TWTR +8.9%) is recouping a portion of its losses today. With 32.7M shares shorted as of Jan. 15, it's likely many shorts are taking profits.
Though reiterating a Sell on Twitter, Pivotal Research's Brian Wieser suggests Twitter is misunderstood by those making direct Facebook comparisons (previous), and that the former is to the latter as radio is to TV.
Twitter is "a marketing vehicle capable of satisfying different kinds of marketing goals," writes Wieser. Whereas Facebook provides a better environment for marketers to form relationships with consumers and engage in "immersive brand-building," Twitter provides immediacy, a greater proportion of out-of-home mobile activity, and "a greater capacity for in-your-face messaging."
He still considers Twitter overvalued, but believes its Q4 numbers show it's proving quite successful at gaining traction with a variety of marketers.