This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Twitter Earnings Preview: What Wall Street's Expecting

Stocks in this article: TWTRFB

Cantor Fitzgerald analyst Youssef Squali (Hold, $45 PT)

"We expect TWTR to report very strong results on Tuesday, 4/29, with total revenue growth of ~115% Y/Y and ad revenue growth of ~128%, primarily driven by improving monetization. That said, user growth (MAU) and engagement are top of mind, since MAU growth decelerated ~900bps in 4Q:13 (to +30% Y/Y) and total timeline views dropped 7% sequentially despite a seasonally strong 4Q. While TWTR remains a key play on growth in Social Internet, the current valuation and imminent lock-up expiration of IPO shares keep us on the sidelines."

Bank of America Merrill Lynch analyst Justin Post (Underperform, $40 PT)

"Twitter reports 4/29 and based on advertiser commentary and FB results, we expect a modest beat vs our and the Street's estimates ($242mn/-$0.03) driven by ad format improvements and sales initiatives. Top 1Q metrics are likely user and ad revenue growth; the Street will likely focus on y/y growth trends vs 4Q. Twitter has made a lot of recent site improvements, and commentary on site changes, new ad format/ad targeting capabilities and outlook for 2Q revenue growth most important for call, in our view. Given the recent negative market reaction to FB (big beat), P and AWAY's 1Q results, we remain cautious on valuation."

MKM Partners analyst Rob Sanderson (Buy, $72 PT)

"The issue for TWTR is not in attracting new users. New activations are very strong. The company needs to improve accessibility and retention of new user signups. This has never been a focus for the company. User growth has just 'happened' for TWTR to date - this says a lot about the underlying value proposition. Our proprietary survey results suggest a strong underlying value proposition for users that get over the learning curve and fixable issues for those that do not.

Management has identified several factors for improvement from on-boarding to managing interest lists to overall user-experience. They are confident that small improvements in new user retention will lead to meaningful improvements in user growth. Management has set expectations for metrics to turn gradually through the year."

Topeka Capital Markets analyst Victor Anthony (Buy, $70 PT)

"Twitter is scheduled to report 1Q14 results today post the market close. The consensus revenue and EBITDA estimates look reasonable and we expect Twitter to exceed those
estimates. Investors will zero in on the monthly active user growth number and timeline views/MAU, the latter metric, we believe, holds less relevance given the product changes. We believe active user growth will take time to accelerate so we are not expecting acceleration to occur this quarter. The lock-up expiration next week will likely add to the volatility in the stock. Moving beyond 1Q14, several monetization initiatives launched over the past several weeks, and more to come, should help drive revenue and EBITDA growth. We are maintaining our Buy into the print but we believe the stock is likely to be volatile due to user growth issues (solvable, in our view)/lock-up/typical late spring-summer lull for Internet stocks/overall swoon in Internet stocks."

Sterne Agee analyst Arvind Bhatia (Neutral, No PT)

"We expect LNKD to exceed its 1Q'14 guidance, as well as consensus revenue/adjusted EBITDA expectations. With shares down 32% year to date and 40% in the last six months even as estimates have largely increased, the stock's valuation is beginning to look attractive. However, we think in the near-term investors are likely to remain focused on the issue of potential deceleration in top-line growth."

--Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs