Seeking Alpha

Twitter higher as Wells Fargo joins upgrade parade

  • Wells Fargo has become the sixth firm to upgrade Twitter (TWTR +1.8%) since its  May 6 lockup expiration, lifting shares to Market Perform albeit while keeping its $36-$39 valuation range.
  • Though admitting Twitter still trades at a premium to peers, Wells thinks its current valuation range is "supported by Twitter’s strong monetization ramp, new product introductions, and broad advertising interest."
  • Like many others, it's still worried about slowing user growth/engagement, and thinks declining activity among older demographics (more valuable to advertisers) "could present downside risk.."
  • Wells expects Twitter to end Q2 with 267M MAUs, up from 255M at the end of Q1 and in-line with Street expectations.
  • Previous upgrades
Comments (4)
  • Island_Dweller
    , contributor
    Comments (359) | Send Message
    Where you been WF, you're late. You can put the potato salad over there with the rest of them.


    Holding and smiling.
    10 Jun, 09:57 AM Reply Like
  • 6269751
    , contributor
    Comments (575) | Send Message
    I established a position with TWTR finally after trashing the issue since it began. I have been paying about $50/week to keep a hedge going which limits my upside potential. This is making money off market conditions, which is fine, but I still don't have confidence in the fundamentals.
    10 Jun, 10:32 AM Reply Like
    , contributor
    Comments (40) | Send Message
    Then buy Apple and watch it go to 100.
    10 Jun, 10:37 AM Reply Like
  • 6269751
    , contributor
    Comments (575) | Send Message
    I don't have confidence in that either. Today (11 jun 2014) is typical for AAPL, it's snaking around the flatline. Twitter is up 8% since the Apple split while AAPL is up 2%. I love to hate them both but I love to hate Twitter more.
    11 Jun, 01:00 PM Reply Like
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