Twitter Inc (TWTR) Stock Jumps As Evercore Highlights Video Ads

Twitter Inc (TWTR) Stock Jumps As Evercore Highlights Video Ads
geralt / Pixabay

Twitter Inc (NYSE:TWTR) shares jumped as much as 6% Thursday, and continued to rise on Friday. The upward momentum was driven by Evercore Partners’ report that Twitter Inc (NYSE:TWTR) is well-positioned to benefit immensely from online video advertising. Shares of the microblogging site jumped 6% or $3.85 to $67.50 on Thursday. The stock rose another 3.35% Friday to $69.78.

Twitter to benefit from online video advertising

Twitter Inc (NYSE:TWTR) shares have been on a roller coaster ride since the company went public about two months ago. Evercore Partners analyst Ken Sena said in a research note to investors that Twitter Inc (NYSE:TWTR) has two strong pillars, immediacy and the support from the traditional TV industry. Sena said Twitter Inc (NYSE:TWTR) is likely to become the market leader in short-form online video viewing, with a potential for long-from viewing.

ValueWalk’s October 2022 Hedge Fund Update: Haidar Capital Surges 225%

reports 1660232581Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring investors exit long-short hedge funds, the oil market is now "broken", and Haidar Capital surges 225%. Q2 2022 hedge fund letters, conferences and more

Twitter Inc (NYSE:TWTR) continues to expand with cable MSOs, content providers and data management platforms. The analyst said that new algorithms to formulate and communicate branded campaigns, improved spending efficiency and a jump in online video advertising will help Twitter Inc (NYSE:TWTR). Assuming that the San Francisco-based company captures just 5% of the online video ad revenues, about 17% of its revenue in 2015-16 will come from video ads.

Evercore bullish on Twitter, others cautious

Online video advertising is booming. According to eMarketer, advertisers spent $4.15 billion on online video advertising in 2013, up 43.5% from 2012. Video advertising is expected to rise 40% to $5.8 billion in 2014. Evercore Partners has an Overweight rating on the stock with a $70 price target. Evercore said Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG) will also benefit from the shift of advertising dollars from traditional TV to Internet.

Twitter Inc (NYSE:TWTR)’s sponsored tweets are also attracting advertisers. According to a survey conducted by IZEA, more than 52% of 10,000 participants used sponsored tweets to promote their businesses in 2013, compared to 47% in 2012 and just 39% in 2011. However, a section of experts remain concerned about the company’s valuation. Twitter Inc (NYSE:TWTR)’s shares have bee fluctuating since its IPO. The stock went above $74 on Dec.26, but plunged to $59.07 on December 30th without any major news or change in the company’s fundamentals. Others believe that Twitter Inc (NYSE:TWTR) is deviated from its fundamentals.

No posts to display