Why is MoPub So Valuable for Twitter? SunTrust's Bob Peck Comments

Bob Peck began his Twitter TWTR MoPub note released Tuesday morning by commenting, "We think Twitter's MoPub exchange is one of its greatest assets, allowing clients to fill mobile inventory directly or through real-time bidding." Looking forward, Peck estimates that MoPub could bring in over $500 million in revenue for Twitter by 2017 which would represent ~14 percent of its total revenues. Peck gave 3 main reasons as to why he views MoPub as such a valuable assets.

• The rapid growth of mobile and real-time bidding which are already a material part of advertising budgets.
• MoPub is able to provide increased targeting through the use of Twitter's identity information.
• Integration and scale.

SunTrust will be hosting a conference call today at 11 am (ET) with former Mobclix CEO, Krishna Subramanian. Following the release of the note, shares of Twitter are trading up about 0.3 percent in today's pre-market session.