Robert Peck Enumerates 4 Catalysts For Twitter

Its seems the change of guards at Twitter Inc (NYSE: TWTR) is having no effect on the stock, which has continued to trade near the $35 level over the last month.

Robert Peck, SunTrust Robinson Humphrey Internet equity analyst, was on CNBC Monday to discuss what is going to be the next catalyst for the stock, Twitter's declining user base and if Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) is likely to acquire the company.

The Catalysts

Peck was asked what he thinks is the next catalyst for Twitter. He replied, "He [Jack Dorsey] has got to do a couple of things. One is get the internal staff motivated and really working hard. Number two is continue the cadence of product roll out. Number three is keeping the roll out of ad products, which you have seen Adam Bain talk about over in Cannes (France) as well.

"Then number four is be able to communicate that effectively externally; that's where Dick Costolo had problems previously. So, now it's going to turn more of the attention that how is the quarter going, how are the user metrics, how is the monetization. So, look for Wall Street to focus there."

Declining User Base

Peck highlighted how Twitter is not talking about growth in its user base anymore saying, "The problem is they talked about revenues, they talked about EBITDA, but what they didn't talk about were the user metrics, which we have said publicly, we think actually could decline for the first time ever from Q1 to Q2. So, their user base could actually decline."

Google's Bid

According to Peck, Google might not have shown interest in buying Twitter currently because "if a bid was imminent, why bother going through this whole CEO transition? If the fundamentals are weaker near-term, maybe they'll get it lower as well."