What Does Morgan Stanley Have To Say About Twitter's New Features?

announced several new products and services in recent weeks. The company introduced Twitter Ad Products called Offers on November 25, a mobile measurement tool called Answers on December 4 and Tailored audiences for mobile apps on December 9. Benjamin Swinburne of Morgan Stanley commented in a note on Tuesday that Twitter's new products appear to be working for advertisers with high return on investments, cost per engagement based ads that are uniquely mobile. “While we are impressed with the company's ability to serve advertisers by leveraging mobile, it is less clear how meaningful the consumer product enhancements will be in driving user growth,” Swinburne wrote. The analyst adds that the company's recent changes could improve measurements and optimization on the platform, however Twitter already monetizes its U.S. users “well above”

on a CPM basis. Swinburne also notes that Twitter's Private Message and Search Functions “seem fairly incremental,” and it is not clear if these features will drive monthly average user growth. Shares of Twitter are Equal-weight rated with a $42 price target.