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

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Comments (4)
  • Island_Dweller
    , contributor
    Comments (690) | 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 2014, 09:57 AM Reply Like
  • 6269751
    , contributor
    Comments (1617) | 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 2014, 10:32 AM Reply Like
    , contributor
    Comments (44) | Send Message
    Then buy Apple and watch it go to 100.
    10 Jun 2014, 10:37 AM Reply Like
  • 6269751
    , contributor
    Comments (1617) | 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 2014, 01:00 PM Reply Like
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