Twitter And Jack Dorsey Are About To Have Their 'Seminal Moment'

Twitter Inc TWTR CEO Jack Dorsey will face a "seminal moment" in a fourth-quarter earnings call February 10, at least according to SunTrust Robert Humphrey analyst Bob Peck.

Dorsey must convince investors that he and Twitter's management have the vision and people in place to effectively stage a turnaround in 2016.

"He must be able to give employees and Wall Street a reason to believe," Peck wrote in a note out Friday. "Without this, the stock could continue to be under pressure."

Related Link: The Collapse Of Twitter Investor Confidence In 4 Charts

Peck emphasized the importance to investors of a clear plan for the year expressed with confidence.

"We feel it is paramount for management to deliver a vision and plan for Twitter, expressing passion and optimism," Peck said. "If they can’t evoke hope, how can investors?"

Peck outlined a series of questions that articulate investors' concerns leading up to the earnings call:

• Specifically, What is Management’s Turnaround Vision?
• Is the Right Team in Place (Management, Employees, and Board)?
• Why Should Investors Have Any Faith in Growth?
• What's the Ad Effectiveness for Advertisers?
• Why Should Investors Gauge Twitter by “Total Reach" Instead of MAUs?
• What’s the Status & Expected Impact of Strategic Partnerships?
• What’s the Impact & Potential of Other Platforms (Vine, Periscope, etc)?
• If the Stock is Cheap, Where Are Share Buybacks & Personal Buying?
• If Growth Plans Fail, Would You Entertain M&A?
• What is Wall Street Missing?

Despite the concern, Peck maintained a Buy rating and $26 price target for Twitter.

Investors may have been emboldened by the climactic nature of Peck's note, with Twitter shares trending slightly up in pre-market trading.