Twitter (TWTR) Gains After Beating Q2 Estimates, Analysts Raise PTs as Brand Recovery Accelerates

July 23, 2021 7:52 AM EDT
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Price: $62.47 +0.29%

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Shares of Twitter (NYSE: TWTR) are up nearly 4% in pre-open Friday after the social media giant reported better-than-expected Q2 results.

TWTR made a profit of $0.20 per share on an adjusted basis to easily top the $0.07 expected by analysts polled by Refinitiv. Sales for the quarter came in at $1.19 billion, again higher than the Street’s consensus of $1.07 billion.

The closely-watched metric mDAUs came in at 206 million to miss on the 206.2 million expected by the Street.

"As we enter the second half of 2021, we are shipping more, learning faster, and hiring remarkable talent. For example, our increased shipping cadence contributed to reaching 206 million average monetizable DAU (mDAU) in Q2, up 11% year over year and 3% quarter over quarter. There's a tremendous opportunity to get the whole world to use Twitter,” said Jack Dorsey, Twitter's CEO.

Following a better-than-expected report, at least eleven Wall Street analysts have raised their price target on Twitter.

BofA analyst Justin Post raised the price target to $90.00 per share from $82.00 as “brand spend recovery hits home.”

“We see Twitter revenues as quite strong, and we are raising 2022 by 9%, close to Snap at 11%. However, we expect 2Q results to be somewhat overshadowed by Snap’s faster revenue and user growth, but we still see more multiple expansion potential for Twitter. We reiterate our positive view on Twitter for 2H based on increased brand advertising rebound, continued traction of MAP product and significant EV/Rev discount to mid-cap peers that could close in 2H. We see an opportunity for Olympics, NFL season and better news cycle to aid US users in 3Q,” the analyst said in a note.

Similarly, Susquehanna analyst Shyam Patil hiked the price target to $85.00 per share from the prior $70.00.

“Our pandemic recovery thesis appears to be playing out, as brand advertising around product launches and events picked up meaningfully in 2Q, driving a huge outperformance on the top-line as well as profitability. The momentum should continue throughout the summer, as evidenced by the strong 3Q guide, and TWTR’s confidence looks to be high given the ramping investments. We remain buyers,” Patil said in a memo on TWTR.



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