Twitter Inc (TWTR): MKM Might Have Your Next 140 Character Investment

Don’t you worry. Twitter Inc (NYSE:TWTR) has resolved the bug that allowed unauthorized users to see the tweets of nearly 100,000 subscribers over the last four months. The company announced that, “As part of the bug fix, we’ve removed all of these unapproved follows, and taken steps to protect against this kind of bug in the future.” Despite the snafu, MKM analyst Rob Sanderson is ready to recommend BUY Twitter Inc (NYSE:TWTR), raising his price target from $50 to $72 and explaining, “Top-line momentum should carry the stock despite near-term growth issues.” Rob categorized TWTR “as a momentum stock and valuation discounts many years of exceptional growth.” He added, “Revenue momentum for Twitter Inc (NYSE:TWTR) is impressive, accelerating to 116% growth in Q4 (105% in Q2 and Q3) and implied 101%-110% in Q1 guidance.”

Rob Sanderson Twitter Inc (TWTR)

Twitter Inc (TWTR)

Rob has a history recommending Twitter Inc (NYSE:TWTR), as well as other internet stocks such as Netflix (NFLX) and Yelp Inc. (YELP), earning him the number 71 spot out of 2436 analysts with a 10.9% average return over S&P-500 and a 69% success rate of recommendations.

Rob S recs Twitter Inc (TWTR)

Twitter Inc (TWTR)

In fact, Rob’s most recent recommendation to BUY TWTR earned him +33.8% over S&P-500! At the end of 2013, Rob stated that Twitter, “is the most powerful media property today and has tremendous potential as an advertising medium.” Rob also pointed out that, “Last quarter, TWTR’s 232mn users generated 159bn Timeline Views. This means this huge-scale global user base checked their timeline an average of 7.5 times per day, every day of the quarter. This was even higher in the US, with an average of 8.9 timeline views per user per day. This engagement metric continues to show an upward trend despite robust growth in users.” Rob’s keen perspective about Twitter’s growth earned him one of his highest returns of +33.8%.

Rob also recently made a recommendation in January to BUY Yelp Inc. (YELP), raising his price target from $71 to $82. Rob stated, “We continue to like YELP as one of the leading providers of local Internet services. The company is among the fastest growing in the sector and key metrics have been accelerating.” Rob also noted, “We expect momentum will continue in the near-term and through in 2014.” Rob has already earned +40.2% over S&P-500.

Back in July of 2013, Rob earned his highest return when he recommended BUY YELP, as well. Rob focused on “longer-term earnings potential” saying, “we expect a strong quarter highlighted by top-line upside, which we think will be in the $54-$56mn range.” Rob ended up earning +58.4% over S&P-500!

However, even though Rob has a history of covering the Internet, his 69% success rate of recommendations still leaves room for some losses. Earlier this year Rob’s BUY Tivo Inc. (TIVO) recommendation did not end up as expected. Rob reiterated his BUY rating and $15 price target right before the release of the company’s Q3 results. Rob was expecting a solid quarter and noted, “given that 85% of current market value is the balance sheet and guaranteed future payments, small deviations to operating trends are not that consequential to the stock.” However, following the release of Q3 reports the stock took a dip and Rob lost -2.6%.

But despite a few losses, Rob’s repeatedly high returns have earned him a spot as a leading analyst. To continue following Rob’s recommendations as Internet companies go in and out of fashion, downloadTipRanks and start making informed financial decisions with advice you can trust.

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About the Author

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