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Rich Greenfield On Twitter's Long-Term Prospects: 'I Think This Could Be A Big Winner'

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Rich Greenfield On Twitter's Long-Term Prospects: 'I Think This Could Be A Big Winner'

Twitter Inc (NYSE: TWTR) shares are up 14 percent this week after beating first quarter earnings estimates.

With daily active users up 14 percent year-over-year, Twitter is reversing some of the negative sentiment that has surrounded the company as of late. BTIG analyst Rich Greenfield told Bloomberg that viewers need to own this stock.

“This is a great recovery story,” he said.

“They're making the product better, more people are using Twitter, they're spending more time on it, and product changes...are actually making a difference," Greenfield said. "Everywhere you look, interest in news and information is surging and the best way to play that we see is through Twitter right now."

While Greenfield still feels it's early in the turnaround story and it will take management time to prove themselves, he sees a company that now has a plan. His firm has significantly changed its tone on the future of Twitter. He noted BTIG never liked Twitter, but recent encouraging metrics now has the firm reiterating a Buy rating.

"Investors hate this stock. They've given up," Greenfield said. "There’s a big opportunity for Twitter to change the narrative from whas it's been to where it's going."

With encouraging user growth that the company is posting, there's potential for advertisers to come back to the platform to chase new eyeballs.

“As the usage grows, advertisers will come back. The ROI of advertising on Twitter is improving. It's just a matter of time. You need to have six months of patience, it doesn’t happen overnight. The early signs, especially the outperformance in Q1 and a first half that's clearly going to be better than people thought in total, bodes very well.

"[T]his could be a big winner,” Greenfield said.

Related Link:

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Latest Ratings for TWTR

DateFirmActionFromTo
Jan 2020DowngradesBuyNeutral
Jan 2020Initiates Coverage OnUnderperform
Dec 2019MaintainsNeutral

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Bloomberg btig Rich GreenfieldAnalyst Color Long Ideas Analyst Ratings Media Trading Ideas Best of Benzinga

 

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