What To Do With Twitter Following 4 Straight Quarters Of Daily Active User Growth

As Twitter Inc TWTR continues to evolve, JPMorgan analyst Doug Anmuth still doesn't see the company doing enough to justify a Buy rating. Anmuth maintained his Neutral rating with a $15 price target.

Even after reporting mixed Q2 user data, Anmuth likes what Twitter has been doing in terms of product innovation lately.

“Over the past year Twitter has defined its unique value proposition as the place to see “what’s happening” in the world. We believe that positioning has created greater focus inside the company and is also more evident in Twitter’s product changes, investment in live video content, branding, & shedding of non-strategic assets,” he said.

See Also: Is Twitter Showing Signs Of Life?

Platform Continues To Get Better

Twitter is focused on providing content that provides greater relevance and creates more user engagement, which should lead to ad revenue growth.

Some of the notable product changes include improvement to the timeline algorithm, the UI refresh in mid-June and the addition of the Explore tab.

However, Anmuth noted “it will take time for brand marketers to re-engage w/TWTR & parts of DR continue to wind down, including TellApart which should go to zero by 4Q17. With no notable change in trend in industry checks, we continue to expect ad revenue declines in 2Q & 3Q, & our current projection for slight 2% growth in 4Q could be optimistic.”

Twitter Getting Involved In Live Video Streaming

Twitter has signed more than 16 content deals, and Anmuth believes Twitter has a proven model for the live video industry. Twitter has been successful with driving viewership and increasing overall conversation about various topics.

Twitter reports earnings on July 27.