Oppenheimer Remains on Sidelines with Twitter (TWTR) as MAUs Decelerate

Oppenheimer analyst Jason Helfstein reiterated a Perform rating on Twitter, Inc. (NYSE: TWTR) following Q2 results and decelerating MAUs.

commented, "TWTR's 2Q MAU deceleration reaffirms the company's struggles to add users, driven by products challenges and competitive pressures. MAUs +12% y/y, a 600 bps deceleration from 1Q. This reflects: 1) limited product updates; 2) larger platforms such as Facebook, Apple, and Snapchat aggressively pushing into media aggregation, and 3) content publishers improving real-time capabilities. While 2Q EBITDA was 17% above the Street, we see muted investor enthusiasm around shares as management acknowledged the company "don’t expect to see sustained meaningful growth in MAUs". At 7x ’16 sales, TWTR is the second most expensive US internet stock behind FB, and still ahead of most internet category leaders that have a clearer product/revenue road map."

For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.

Shares of Twitter, Inc. closed at $36.54 yesterday.

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