Reuters - Video

Edition: U.S. | U.K. | IN | CN

Finance Videos

Holding on to Twitter

Monday, May 05, 2014 - 03:12

May 5 - Twitter is one of the star platforms on the web, but its stock is too expensive at current levels, according to SunTrust Robinson Humphrey analyst Robert Peck who has a ''hold'' rating on the stock.

▲ Hide Transcript

View Transcript

British shares have had a rough ride lately. And those first quarter results show it didn't help so the real question right now is whether it is time to -- fell. Our whole. Well joining me with a neutral rating is Robert -- He's an analyst at suntrust Robinson -- so hungry so tell me give me your thesis on line now's the time to just. Hold on to shares of Twitter. Personal thank you for having me. Inhumane over the first and must actually have report out on Twitter so pre IPO -- -- -- at a report out but at fifty dollars -- target. Yak yards one very well so the stock -- -- north sixty bucks close to seven dollars at that when we put valuation got a little ahead of itself so we down. So the reason why we like the stock here is that we think it's one of the platforms of the it going for it owns the whole communication a broadcast mechanism right now for the right that's number one. Number two when the -- should run too far we saw a little too expensive. Having the recent pullback makes a little more interest thing I think what you get past the share locked up tomorrow. Investors start dipping their toes here. Now you have a price target of fifty dollars this year what happens yet you win. Would hit that fifty dollars well if it hits that target -- will be some news flow that will take it right so we then look at our numbers you are number should be higher or lower etc. which could have us take our target of further there's been some good positive news. And and either upgrade or stop from -- it depends on the news flow from there. On the we can also downgraded well depending if you know we feel about Irish and gotten ball. So tell me what would make you come off affiliates so to speak we'll -- you switched to a lot yes well itself. There's two big things one is there user metrics have been sort of suppressed lately and that's one of the big things as -- Wall Street focus on their users right now are growing around 20% herself. To pay these types of multiples you wanna see faster growth and that's when my season for inflection point there. Number two is I do you want your past the a lock up which starts tonight tomorrow to about 200 million shares are gonna hit the open market. On supply and demand more supply shares can be sold should -- theoretically on the stock price that's why -- way to get past this point to see how that impacts -- press. And what about the -- monthly active users I know it came -- -- what to within 55 million that's right pretty much spot on for a lot of the analysts expectations how concerned are you about that and also yes. How concerned are you about the sticky slight gap that amount of time that Twitter users are spending on Twitter. It's a great question and we actually did our ports and third party analysis that said. A lot of the newer users coming on weren't as active it's almost feel 8020 -- that 80% of the tweets are being created by. 20% of the of the active users right so I think the real question here is how do you accelerate that -- 55 million -- it's been more. Mass market right the euphemism is your mom is your mom on Twitter probably not but is your mom on FaceBook. Probably because she wants a picture of decades the grand Hayes etc. so how to get more mass market and the it's one of the biggest challenges the company worked on actively right now. Great thank you Robert -- Of suntrust Robinson Humphrey -- Giddens and this is rulers.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Holding on to Twitter

Monday, May 05, 2014 - 03:12