Posted By RichC on October 29, 2015
Now that the popular social networking company Twitter has a “rudder,” Jack Dorsey, CEO, one would think confidence would be higher? That is difficult to tell when reading and monitoring those who are paid to research, have deeper insight and advise investors (graphic on right). The consensus is wildly split, both on the direction of the stock and success of this social networking company.
Most investors and stock market traders realize that new and innovative companies need growth more than profits in order to sustain their stock price, unfortunately the 3rd quarter financials for Twitter didn’t impress (LINK). Neither growth or profits currently favor $TWTR as an investment … but the service is still a very popular outlet, especially for the news media and as a way to report real time information and give feedback. Some of are waiting for a sugar daddy buyer – Google, Apple, Microsoft or a media company?
Many of us (yes I own $TWTR) are hoping that Dorsey can infuse some direction into this fledging company. His instincts have been good and the current active user base for Twitter is a good mix – most importantly expendable income type users for advertisers to market to. I’d like to see some consistency in advertiser growth and a steady predictable stream of innovative tweaks. With the right leadership, this shouldn’t be that difficult to manage. As for the volatile stock price and chart direction … that’s probably not going to change until analyses can come to some consensus.