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Twitter is ‘toast’ and the stock is not even worth $10: Analyst
01-12-2017, 04:56 AM
Post: #1
Twitter is ‘toast’ and the stock is not even worth $10: Analyst
Arjun Kharpal | @ArjunKharpal
Wednesday, 21 Dec 2016 | 5:03 AM ET
CNBC.com

Twitter is "toast" as a company and the stock is not even worth $10, according to a research note published Tuesday, following the departure of another top executive at the social media service.

The microblogging platform's chief technology officer, Adam Messinger, tweeted that he would leave the company and "take some time off", while Josh McFarland, vice president of product at Twitter, also said he was exiting the company. Both executives announced their departure on Tuesday.

Meanwhile, last month, Adam Bain stepped down as chief operating officer last month to be replaced by chief financial officer Anthony Noto, who has yet to be replaced. Twitter has also lost leaders from business development, media and commerce, media partnerships, human resources, and engineering this year.

The departures prompted Trip Chowdhry, the managing director of equity research at Global Equities Research, and a noted "uber-bear" on tech stocks, to issue a note on Tuesday claiming Twitter is "toast" and "not even a $10 stock".


Twitter CTO Adam Messinger leaving firm Twitter CTO Adam Messinger leaving firm
Tuesday, 20 Dec 2016 | 4:56 PM ET | 01:29
"Many investors were foolishly building (an) investment thesis based on complete stupidity," Chowdhry wrote.

Twitter's share price closed at $17.92 on Tuesday. A $10 price tag would represent a more than 44 percent decline in the U.S. technology company's shares on Tuesday's closing price. It's not the first time that Chowdhry has said that Twitter could fall to $10. In October, the analyst said that next year, the fall is likely to take place.

The analyst said that Twitter's data quality is "horrible". Chowdhry said that many pollsters used Twitter data to predict a Hillary Clinton win in the U.S. election but the fact that Donald Trump won shows that data quality is poor. One reason for this is too many fake users on the platform, Chowdhry claims.

"If data quality is bad, ad targeting is bad, and if ad targeting is bad, advertisers are not happy, and hence monetization will remain challenging for Twitter," Chowdhry said.


Live video potential

Chowdhry's call is a particularly bearish voice amid a chorus of cautious investors. Twitter's stock currently has 25 hold ratings, six sells and two strong sells, according to Reuters data. Only six analysts have a buy or strong buy rating, while the average price target for the stock is $17.02.

The social media service has struggled to grow its users but its latest quarterly results could give investors some hope. Twitter's average monthly active users for the third quarter increased to 317 million, up 4 million from its second quarter, while earnings beat market expectations. The U.S. social media giant also announced plans to lay off about 350 people, or 9 percent of its global workforce.


Twitter
Damien Meyer | AFP | Getty Images
Twitter was courted by a number of potential acquirers earlier this year, including Salesforce, but talks ended without a deal. While some still think Twitter should be acquired, the company has to go it alone and try to boost users.

One focus has been on live video. Twitter live-streams Thursday night NFL games, and on Tuesday announced plans to live-stream the Golden Globes pre-show.

Analysts see this as a potential driver of growth if it takes off. Trefis, a platform that uses data to look at how stocks are valued and where they could move, predicts the number of timeline views per U.S. monthly active user for Twitter will increase gradually from around 200,000 in 2016 to 209,000 by the end of 2019. Live video could boost that number and if the number of timeline reaches nearly 300,000 by the end of 2019, Twitter's stock could see 20 percent upside to Trefis' current price estimate of $22.28.

Still the company faces stiff competition from the likes of Facebook and Snapchat, both of which focus heavily on video.

Neil Doshi, an analyst at Mizuho Securities, wrote in a note last month that other social media rivals would continue to take ad revenue and user share from Twitter, while he continued to "remain concerned" about the business due to continued management departures.

Those who know, know! Big Grin
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01-12-2017, 04:56 AM
Post: #2
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
Quote:The analyst said that Twitter's data quality is "horrible". Chowdhry said that many pollsters used Twitter data to predict a Hillary Clinton win in the U.S. election but the fact that Donald Trump won shows that data quality is poor. One reason for this is too many fake users on the platform, Chowdhry claims.

"If data quality is bad, ad targeting is bad, and if ad targeting is bad, advertisers are not happy, and hence monetization will remain challenging for Twitter," Chowdhry said

here they basically admit many hillary supporters were fake on twitter.

quelle surprise
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01-12-2017, 05:46 AM
Post: #3
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
I don't see what Twitter does or owns to make money at all.

--I Eat Grits--
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01-12-2017, 07:27 AM
Post: #4
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
on some level I think they are being allowed to or forced to fail. Twitter basically allowed the right wing to rise in american politics over the last few years. TWEETS. The speed of information travels too fast and the reverse chronological method makes it easy to get updated on the latest and greatest scandals.

Twitter is not NWO friendly EVEN if it's owned by NWO lackeys.

Quote:TWO BUZZWORDS DEFINE the past decade of computing: mobile and social. Those days are coming to an end. Although smartphones and social media remain as important as ever, the war to control those platforms are over. Winners are being coronated as the losers are, at last, conceding.

Microsoft plans to unload what’s left of its Nokia purchase, and BlackBerry—remember them?—is abandoning the hardware business. That essentially ends the smartphone wars, leaving iOS and Android as the dominant operating systems. Now, Twitter’s ongoing woes suggest the end of the social platform wars are nigh.

Twitter stocks jumped last month amid rumors of a sale, with Google, Apple, and Salesforce cited as suitors. Now it appears they’ve all jilted the company, and its stock tumbled to below pre-rumor levels.

There are many reasons the titans of tech would pass. Twitter isn’t growing fast enough, it doesn’t make enough money, and it is overrun by trolls, morons, and bullies. And those are the big problems. But the fact no one seems to want one of the world’s most influential social platforms says something about how the landscape has changed.
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01-12-2017, 07:35 AM
Post: #5
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
If Trump deleted his Twitter account, they probably become a penny stock.
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01-12-2017, 07:38 AM
Post: #6
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
they say Twitter isn't relevant yet it basicaly decided the US election

i said from the beginning that twitter was ok because it was very functional and tool-like.

that is changing now with the algorithm function which will feed NWO approved stories to the users.

the end of twitter may be near. either they get bought out or fade into the background.

twitter is also an excellent format to transmit messages in time of an emergency. many uses, but the platform has been coopted by the right wing and the left wing people who dominate tech don't like that.
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01-12-2017, 07:40 AM
Post: #7
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
(01-12-2017 05:46 AM)Billygoat Wrote:  I don't see what Twitter does or owns to make money at all.

the traffic it gets is potential money and can be exploited for future profit.

they can put an ad in between every 4-5 tweets and make money that way. or they could they have targeted ad tweets that match your preferences. the bottom line is they have the user base, but they seem to have fallen out of favor.

they don't like twitter because it's not anonymous. they like facebook and google because it's all tied to your real identity.

twitter is less about ME and more about the world.

the NWO wants you focused ON YOURSELF and your dumb trinkets rather than stuff like pizzagate that can spread at the speed of light on a network such as twitter.

Those who know, know! Big Grin
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01-12-2017, 07:43 AM
Post: #8
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
I think that Twitter has huge potential, they just need to figure out how to capitalize on it.

They have the most powerful leader in the world using it every day to update a waiting world. Everytime it gets mentioned that Trump has tweeted or used Twitter, should be money in the bank for the investors.

In this world of short attention spans, the 140 character mini-blog format will only grow more popular.

They need to do what facebook did, and make it more difficult to register an anonymous account. This will reduce the false demographic stats, and help to maximise advertisers bang for buck.

I'm confident that if I was given the job of turning Twitter's fortunes around, I could do it. It's a poorly managed resource with huge potential.

I'm just trying to figure this shit out like you are.
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01-12-2017, 07:51 AM
Post: #9
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
it's the most important social network platform right now due to how fast you can spread the news.

yes they can monetize by selling analytics or targeted tweets.

they have the traffic, should not be hard to monetize. i def. think they are being allowed to fail. now they are saying no one is interested in buying them out.
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01-12-2017, 08:17 AM
Post: #10
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
Twitter has been running on debt year after year since it's inception, they just gather as many users as they can while postponing the monetizing part indefinitely. A lot of tech companies are unsustainable like that, I believe that Uber, Lyft and Postmates will be the next ones to go under.
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01-12-2017, 08:38 AM
Post: #11
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
If they could monetize twitter they already would have.

It isn't working and it's failing. . Yes, it's great for information exchange. But nothing is free.

People won't pay to use it. Even Fb would die quickly if they charged ten bucks a year.

I don't get ads in twitter. I don't know why. If they make it harder for anonymous people to sign up the numbers will dwindle. .

It only works by its current failing method. . I think any changes would kill it and they knew that and that's why they are quitting.

Like a firecracker it is only useful when burning itself out.

--I Eat Grits--
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01-12-2017, 06:33 PM
Post: #12
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
Social media was a mistake

come for the calo, stay for the yoshida brotha
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01-12-2017, 06:37 PM
Post: #13
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
I highly doubt that facebook makes any money either, how can it?

What generates the revenue, has anyone here ever clicked on a facebook ad?

It's all bullshit, social media cannot make money, it is funded by the intelligence agencies for surveillance purposes.

Twitter has probably fallen out of favor with the US Goverment after Trump's victory, hence the sudden sounding of the death knolls by the MSM.

That being said, if Twitter does drop to $10 a share, I might buy some.

I can't see it ever being shut down, and the basic idea is sound, and has a lot of potential. They just need to figure out how to make some bucks from it.
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01-12-2017, 07:00 PM
Post: #14
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
studies have shown only about 8% of the web users actually click on ads for the most part.

facebook is chosen because everyone on there is verified.

twitter is dangerous politically
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01-12-2017, 09:17 PM
Post: #15
RE: Twitter is ‘toast’ and the stock is not even worth $10: Analyst
(01-12-2017 07:00 PM)PUG-THUG Wrote:  studies have shown only about 8% of the web users actually click on ads for the most part.

facebook is chosen because everyone on there is verified.

twitter is dangerous politically

Yeah, I've registered a couple of anonymous accounts on facebook and it's pain in the ass.

If you start to make waves they lock your account and send you a request for ID verification.

That's what is currently great about Twitter, I can register myself as @PodestaPedo and start tweeting all sorts of shit, and they allow it. But from a business model point of view, it has many flaws.

I'm just trying to figure this shit out like you are.
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