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Twitter Isn't Very Attractive Right Now And This Analyst Is Surprised It Has So Many Possible Suitors

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Twitter Isn't Very Attractive Right Now And This Analyst Is Surprised It Has So Many Possible Suitors

salesforce.com, inc. (NYSE: CRM), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) and Walt Disney Co (NYSE: DIS) are all said to be vying to buy out Twitter Inc (NYSE: TWTR) - and this is "surprising" to Neil Doshi of Mizuho securities.

Speaking as a guest on CNBC, Doshi admitted he's "pretty surprised" there are so many potential suitors to acquire Twitter at its current valuation. After all, Twitter is a company whose fundamentals have been "down very significantly." Specifically, the company's revenue is growing at just 20 percent, "well below" levels seen a year ago and its user base has "stalled."

Doshi said the issues surrounding privacy on Twitter's platform remains.

Related Link: Twitter Deal Unlikely, But Might Still Trade At An M&A Premium

Doshi was asked by CNBC if it's at all possible that the aforementioned companies would find justification in acquiring Twitter simply on the basis they have the cash to do so. For instance, Microsoft already dished out billions of dollars to acquire LinkedIn and by some accounts Disney overpaid for Lucasfilm.

The analyst answered that LinkedIn is a "great asset" with a growing user base and a "significantly" faster revenue growth rate compared to Twitter. In addition, Lucasfilm "definitely has value" given its many intellectual property rights.

Twitter has neither of those characteristics.

Shares traded recently at $23.58, up 24 percent over the last five trading sessions.

Latest Ratings for TWTR

DateFirmActionFromTo
Oct 2019MaintainsMarket Perform
Oct 2019AssumesNeutral
Oct 2019MaintainsEqual-Weight

View More Analyst Ratings for TWTR
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Posted-In: CNBC Mizuho Securities Neil Doshi Twitter AcquisitionAnalyst Color M&A Analyst Ratings Media Best of Benzinga

 

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