Seeking Alpha

Twitter inks $230M, 2-year deal with ad giant Omnicom

  • As part of the deal, Omnicom's (OMC +0.2%) Accuen ad trading desk, which makes programmatic ad buys (a fast-growing market), will make purchases via Twitter's (TWTR +0.5%) MoPub mobile ad exchange/network.
  • In addition, Omnicom will be locking in ad rates and inventory access from Twitter, and get a "first look" at new Twitter ad products, of which there have been many as of late.
  • The deal follows an agreement reached last year with Starcom MediaVest that's reportedly worth $200M over 2 years. For reference, Twitter's 2014 and 2015 revenue consensus estimates are at $1.27B and $2.04B.
  • Twitter asserts MoPub's ad network reaches 1B Android/iOS users. Going forward, MoPub will also be used to deliver ads on Twitter's site and apps (e.g. Twitter's app install ads).
Comments (7)
  • smart_investoor
    , contributor
    Comments (241) | Send Message
     
    still no profit
    27 May 2014, 11:02 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1535) | Send Message
     
    Don't worry, they'll make billions selling shares
    27 May 2014, 12:10 PM Reply Like
  • 6269751
    , contributor
    Comments (894) | Send Message
     
    Market reception of the news seems lukewarm at best.
    27 May 2014, 04:25 PM Reply Like
  • 22643611
    , contributor
    Comments (2086) | Send Message
     
    Well it did soar like a bird up a whopping penny!
    27 May 2014, 06:14 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (534) | Send Message
     
    Positive news and it's being met with skepticism, scoffs, and downplays. My thoughts are after such an astronomical plunge in a matter of months, how much fuel is left in the short-side tank to push it down much further? It has dropped 35% in 2 months. Certainly valuation was in question before, but now that argument is going to get challenged should the company continue to beat estimates as it has done in the prior 2 quarters.

     

    No matter how you look at it, it's a fun stock to own given how crazy it trades.
    27 May 2014, 08:38 PM Reply Like
  • 22643611
    , contributor
    Comments (2086) | Send Message
     
    @Island, TWTR does not trade crazy anymore and hasn't since the lockup expiration. The increase in shares and the waning interest in the stock
    has exponentially decreased its volatility.
    The stock is still overvalued.
    Come Sept. 3rd I am of the opinion that even if they have great earnings
    along with no profits and still declining new users the stock will continue to
    go lower.
    Your last sentence is really interesting. I never bought a stock because it
    was "fun to own".
    Personally I only buy stocks I think will make me money.

     

    Best of luck with your TWTR
    28 May 2014, 07:20 AM Reply Like
  • Island_Dweller
    , contributor
    Comments (534) | Send Message
     
    I keep my "fun" stocks to about 1 or 2 in my portfolio to spice things up. You can have your snoozers that just trade in tandem with the market averages, and those should be your core holdings, but a speculation stock, like TWTR keeps things interesting.

     

    Don't misunderstand, I don't just throw money at a name and hope it goes up, I still go over data and market reactions to find whether the company's business and future prospects are correctly being priced in - it's an imperfect market after all therefore creating opportunities. If I come to the conclusion that there's misrepresentation culminating into an overreaction, I take a bite.
    28 May 2014, 08:33 PM Reply Like
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