Wunderlich Says Twitter User Count Will Disappoint Wall Street

Shares of Twitter 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 states, “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: 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 0.65 percent to $38.55.