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Twitter Analyst Offers Good And Bad News, But The Good News 'Is A Lot Shorter'

Twitter Analyst Offers Good And Bad News, But The Good News 'Is A Lot Shorter'

James Cakmak of Monness, Crespi, Hardt & Co. was a guest on CNBC's "Squawk Box" and offered both good news and bad news on Twitter Inc (NYSE: TWTR).

However, Cakmak cautioned that the "good news is a lot shorter."

According to the analyst, Twitter's monthly active user (MAU) base have "somewhat stabilized and actually upticked." He added that the company faces several opportunities including its search partnership with Google (parent company: Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)) and the NFL deal to live-stream football matches.

On the other hand, Cakmak suggested that all the new revenue sources that Twitter will realize from its initiatives will "completely cannibalize revenue from their old products."

Related Link: Twitter Hits New All-Time Low By A Penny

"Even though impressions, the number of times you view ads is growing, pricing is falling off the cliff," Cakmak said. "So that's completely provided an offset."

He added that this contrasts to Facebook Inc (NASDAQ: FB)'s advertising business in which both impressions and pricing are growing "because the demand is there."

Cakmak also suggested that Snapchat is a "prime company positioned to win television advertising dollars" because the platform is proving to be more successful in "driving longer engagement."

Finally, the analyst stated that Twitter is likely to remain an independent company and is unlikely to be acquired by a larger tech company.

Shares of Twitter were trading higher by around 1.6 percent Tuesday morning.

Posted-In: CNBCAnalyst Color Long Ideas News Movers Tech Media Trading Ideas Best of Benzinga


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