Market Overview

It's All About Ad Dollars For Twitter This Q3

It's All About Ad Dollars For Twitter This Q3

Until Twitter Inc (NYSE: TWTR)'s incremental ad dollars arrive, Deutsche Bank is staying on the sidelines. 

Deutsche's model for 10 percent year-over-year daily active user growth has modest upside despite tougher comps, analyst Lloyd Walmsley said in a Tuesday note. 

He maintained a Hold on Twitter with a $17 price target. 

Deutsche's expectations are premised on Twitter continuing to develop its timeline algorithm and notifications, and better performance in retaining top-of-the-funnel metrics from last quarter, Walmsley said. (See Walmsley's track record here.) 

Conversations in the ad industr suggest that Twitter's core sales pitch has "increasing resonance," Walmsley said. With more advertising coming to the platform, the analyst projects that revenue growth will follow. 

User Growth Is Key 

ComScore data shows that unique visitor growth to Twitter appears to be showing improvement, according to Deutsche Bank. If DAU comps worsen, it will pose a new challenge for the social media platform, according to the research firm. 

"We see promising international expansion efforts as more nascent," Walmsley said. 

For the third quarter, Deutsche projects DAU growth of 10 percent before a drops off to 8 percent in the fourth quarter, as comps worsen. The firm's estimate for MAU growth in the third quarter is 4 percent, with the growth slowing to 3 percent in the fourth quarter.

With continuing mixed feedback around ad performance, Deutsche is hesitant on medium term trends, the analyst said. 

"We think improving MAU and DAU growth could help further improve advertiser interest in the platform, and we would get more positive on any further acceleration in DAUs, particularly into more challenging comps with better feedback from the ad community specific to performance." 

Related Links: 

This Chart Shows The Intense Competition Among Social Media Companies 

Recode speculates Why Amazon Would Want To Acquire Twitter 

Latest Ratings for TWTR

Oct 2019MaintainsEqual-Weight
Jul 2019MaintainsNeutral
Jul 2019Initiates Coverage OnNeutral

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Securities Lloyd WalmsleyAnalyst Color Reiteration Analyst Ratings Best of Benzinga


Related Articles (TWTR)

View Comments and Join the Discussion!

Latest Ratings

YEXTMorgan StanleyMaintains15.0
WKMorgan StanleyMaintains42.0
RAMPMorgan StanleyMaintains58.0
PDMorgan StanleyMaintains34.0
HTHTDaiwa CapitalDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Albemarle, Bank Of America, And Other Stocks On Fast Money Traders' Radar

Mid-Afternoon Market Update: Acadia Healthcare Tumbles After Downbeat Results; MacroGenics Shares Surge