Will Lady Luck Work For Twitter Inc. (NYSE:TWTR)?

Posted by Lynn Eisler December 9, 2013 0 Comment 1143 views

Twitter Inc. (NYSE:TWTR)’s stock has seen much of swings during the month following its launch in November. At Friday’s closing of $44.95 the stock is trading about 10.26% below its all-time high of $50.09 and 15.85% above its all-time low of $38.80. More interestingly the stock of Twitter Inc. successfully managed to trade well above its offer price of $26 and did not face any Facebook Inc. (NASDAQ:FB) type fiasco which traded below its offer price for significant period of time.

The Stock and the Street

Recently Carlos Kirjner, equities research analyst at Bernstein Research rated Twitter Inc. (NYSE:TWTR)’s stock with a ‘Market Perform’ rating and a price objective of $40. Moreover Kirjner suggested that stock may be an attractive buy somewhere around $36 or below, based on the analysis performed till date. At $36 level they presently estimate mere 10% downside and huge 50% upside potential for the stock.

The Rising Prospects

Carlos Kirjner believes enormous growth in Twitter Inc. (NYSE:TWTR)’s overall users from 247 million in current year to 300 million in 2014 and about 365 million users in 2015. Obviously the increase in overall users will drive Twitter’s revenue as with more users there will be likely chances of winning more ads. Twitter’s average revenue per user is more likely to increase among international users as the company might push international sales channel to further develop the currently under-monetized channels.

A Woman Director

Marjorie M. Scardino is finally the most awaited woman member who recently joined Twitter Inc. (NYSE:TWTR)’s Board. Till date everyone was condemning Twitter Inc. for not having any female member on its Board.

While much investigation has been done on proportion of female members on the Board and their influence on corporate profitability; further research is guaranteed on actual role played by these women members on Board in corporate discussions and their influence on particular decisions. Only time would tell whether lady luck would favour Twitter or not?

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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