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Wunderlich Says Twitter User Count Will Disappoint Wall Street

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Shares of Twitter (NYSE: TWTR) have been hotly traded as multiple analysts gave their expectations for the social media firm’s monthly active users (MAUs).

Wunderlich expects Twitter to report MAUs between 260 million and 262 million, about 2.3 percent below the 267 million consensus. The note stated, “we expect buy side and sell side expectations are still too aggressive on MAU growth and the company has struggled to meaningfully grow its user base.”

Many are expecting the World Cup to have boosted MAUs, but Wunderlich does not think the vent will add a meaningful number of users to the platform. However, the World Cup is expected to have the short-term effect of, “higher timeline views per MAU than our estimates for 816 in the U.S. and 610 Internationally.”

Related Link: SunTrust Explains Twitter User Estimates

The research note also commented on Twitter’s recent acquisitions: “We believe the acquisitions of Namo Media and Tap Commerce are positive moves to expand the company's capabilities and reach with mobile advertisers and app makers. We are optimistic on the long term potential of the MoPub mobile advertising business and we believe the company has a much better chance to gain mass market reach.”

Wunderlich has a $35 price target, 10.4 percent below the company’s current share price. Twitter was last trading up 2.19 percent to $39.17.

Latest Ratings for TWTR

DateFirmActionFromTo
Feb 2017Cowen & Co.DowngradesMarket PerformUnderperform
Feb 2017Raymond JamesDowngradesMarket PerformUnderperform
Feb 2017Deutsche BankDowngradesBuyHold

View More Analyst Ratings for TWTR
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