Analysts Are Positive About Twitter Inc (NYSE:TWTR)
Twitter Inc had a very shaky start to the year 2014, this post an impressive surge of the stock of the company in December 2013. The main reason behind the fall in the stock values were a few articles that had been put out by analysts mostly to work investors who were over investing in Twitter stock. However investors and analysts have changed their sentiment regarding the stock and they are inviting people to invest in the micro-blogging behemoth for nearly sure-shot gains on the stock.
What the analysts feel
Stifel Nicolaus became the latest firm that proposed buying the stock. The price target that the firm issued post coverage of the stock is at $75 which is higher than the stock price history since the company went public. Stifel says that there is a lot of potential which work well on various metrics which are not just impressive but are also strong enough that the valuation usually exceeds expectations among analysts. Before Stifel, Goldman Sachs had also raised the target price on Twitter stock from $46 to $65. The stock soon hit $64.69 as soon as this target price was raised and settled down at %62.20 at closing on Friday.
What caused the trouble?
There were many analysts who had rather bearish views with regards to the stock and it sent the prices tumbling down in the recent weeks. Most analysts raised concerns that the company wasn’t generating as much revenue from ads as a result the prospects appeared poor to many. However the launch of video ads by Facebook Inc turned things around for the stock as well as for analysts.
Twitter Inc (NYSE:TWTR) has not really paid much heed to the analysts and hasn’t really reacted to the situation. The stock now has a buy rating which means that the company was right in not raising unnecessary concerns. Twitter and the volatility of the stock will only give cash flow to traders who know how to dance. The company is spending more on advertising than ever and its new venture into brand advertising will surely boost long term investors.