MKM Says Buy Twitter Ahead of May Earnings Release

MKM Partners is advising clients to buy Twitter

ahead of earnings on May 7th. Citing a proprietary survey, analyst Rob Sanderson believes the company's user growth issues “appear to be fixable.” The slowing of user growth could be attributed to difficulties related to account maintenance, the analyst said. User-engagement is high, which suggests large advertising potential, according to Sanderson. Jim Struggler, MKM derivatives strategist, advised investors add long exposure by using June $40/$50 risk reversals. The stock has been a roller coaster since its initial public offering in November, 2013. Shares opened for trade at $45.10 on November 7th after being priced at $26. By late December the stock had reached a high fo $74.73. Shares of Twitter are up 0.57 percent to $47.30 in Wednesday's trading.