Twitter (TWTR) Nears Peak US MAUs - Detwiler Fenton
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Twitter (NYSE: TWTR) is sharply lower again today and traders are pointing to research from Detwiler Fenton to explain the move.
In a note to clients today, Detwiler's Alex Arnold said while the company is positioned well on mobile its ability to recruit new users is looking dimmer and dimmer. He sees Moments as being pretty unlikely to reopen any new user floodgates.
Arnold said approximately 50MM monthly active users (MAU) in the US seems to be near a top, although this doesn't mean the platform is capped out everywhere. He said growth opportunities exist internationally and also with non-logged-in users.
While the "real-time" nature of Twitter makes it the first place many people go for info, advertisers have been much slower in bringing their buys in "real-time." This "as the amount of coordination in today's landscape needed to realize the promise of opportunity has and will likely continue to prove difficult."
Of the many priorities Twitter listed for the future, many are seen as wishful thinking, according to the analyst: Below a run-down is provided, listed as "WIND" (positive outlook) or 'WISHFUL" (not likely to pay dividends - at least in the next couple of
years):
Video advertising: WIND
Demographic targeting for advertisers: WISHFUL
Mobile commerce: WISHFUL
Google Partnership: WISHFUL
Reach: WIND
Amplify: WISHFUL
Real-time advertiser opportunities dominate: WISHFUL
Shares of Twitter are down 5.4% today.
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