Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Twitter may struggle to replicate bumper 2020 growth: analysts

Stock MarketsApr 30, 2021 11:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Twitter logo displayed on a screen on the floor of the NYSE

By Eva Mathews

(Reuters) - Twitter Inc (NYSE:TWTR) will struggle to replicate a bumper 2020 dominated by the U.S. political battles, civil unrest and the COVID-19 crisis as people venture out following vaccine rollouts, Wall Street analysts said on Friday.

The lifting of restrictions as people get vaccinated has largely seen benefiting other digital ad firms such as Facebook Inc (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) Inc's Google whose stocks soared after reporting blockbuster results this week.

Not so with Twitter. Shares sank more than 12% on Friday after the social media company reported first-quarter revenue and user numbers mostly in line with analyst estimates and warned the current quarter could be its worse as it eyed a weaker 2021.

"The company's weak future guidance suggests that repeating this performance will be extremely difficult," said Haris Anwar, senior analyst at Investing.com, adding that more people will look to engage in offline activities as the vaccine rollouts pick up.

Although other tech companies have warned of a drop in users this year, they are still upbeat on ad spending as marketers try to target consumers eager to spend and travel after being locked indoors for over a year.

"Twitter doesn't seem well positioned to actually capture the most dynamic part of the digital advertising economy as they lack both sufficient scale of users and the first party data signals that attract performance based marketers," said Michael Nathanson, senior research analyst at MoffetNathanson LLC.

A vow to focus on new products and features by Twitter did little to allay investor concerns on Friday.

However, some analysts found the company's current-quarter revenue forecast conservative as they expect newer app features and return of live events to boost user engagement and monetization in coming months.

At least eight brokerages cut their price targets on Twitter after the company forecast tepid revenue growth for the second quarter.

Of the 40 analysts covering the stock, 29 have a "hold" or lower rating and the rest have a "buy" or higher rating. The current median price target on the stock is $70, as per Refinitiv data.

Twitter may struggle to replicate bumper 2020 growth: analysts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Stephen Fa
Stephen Fa May 01, 2021 9:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No surprise, Jack and his leftist minions pissed off half of America for communist media reasons.
Vytis Jurgelevičius
Vytis Jurgelevičius Apr 30, 2021 11:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Twitter should add Algorand or Polkadot parachain, enable crypto wallets for verified users.
Notvery Goodathis
Peteymcletey Apr 30, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sucks to ******
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email