Victor Anthony Loves Social Stocks After Twitter Polls

Loading...
Loading...
  • Twitter Inc TWTR decided to increase the number of responses available for polls from two to four.
  • To take advantage of the new feature/possibilities, analysts at Axiom Capital Research led by Victor Anthony posted a few questions focused on retail, Twitter’s Moments feature, and online dating.

Amazon

When asked where they were most likely to shop this holiday season, 72 percent of respondents selected Amazon.com, Inc. AMZN. Overall, Anthony’s takeaway is that its stock should be bought.

Interestingly, the analysts spoke to a few Best Buy Co Inc BBY and Target Corporation TGT sales reps and showed them the poll results.

What was surprising was eBay Inc EBAY's low popularity. Only 5 percent of the people said they were likely to shop on eBay this holiday season. The analysts see this as "an indication of the work that is ahead for the new team in terms of changing the consumer perception of eBay."

In addition, ChannelAdvisor pointed out that that same-store sales by mid-day on Thanksgiving Day was 31 percent, up year-over-year versus 28 percent last year for Amazon sellers. For eBay it was up 11 percent, versus 5.7 percent on Thanksgiving Day 2014.

Twitter

Axiom asked if Twitter’s new Moments feature had increased the time users spent on Twitter. Sixty-eight percent said the new feature had not had an impact on the time they spent on the site, while 32 percent of them declared spending more time on it due to Moments. Forty-five percent of respondents would recommend Moments to a friend.

The analysts felt encouraged by the results, as they could be indicative of the fact that time spent on the site is no longer declining, and of the "future potential of MAU growth."

Loading...
Loading...

Tinder

The firm looked into dating services. "Which online dating service do you prefer?" they asked.

Match Group Inc MTCH's Tinder was the winner by a very wide margin. Sixty-five percent of respondents chose it as their preferred online dating service.

The analysts "believe the result is telling and suggestive of the monetization potential for Tinder. Recall that we see Tinder generating $95-$150 in annual EBITDA through a combination of subscriber fees and advertising."

On the other hand, while the Match.com result might look low, they believe "Twitter's users skew high with millennials whereas the Match.com age demo is higher."

Ratings

Here's a look at Axiom's ratings on the stocks mentioned:

  • Amazon: Buy
  • Twitter: Buy
  • Match Group: Buy
  • eBay: Buy
  • Best Buy: Not Rated
  • Target: Not Rated

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasReiterationCrowdsourcingAnalyst RatingsTechTrading IdeasGeneralaxiomAxiom Capital ResearchVictor Anthony
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...