Twitter (TWTR) Gains After Beating Q2 Estimates, Analysts Raise PTs as Brand Recovery Accelerates
- Wall Street closes rollercoaster week sharply lower
- Invesco (IVZ) Reportedly in Talks to Merge With State Street's (STT) Asset Management Business, Citi Sees More Cons than Pros
- FDA Votes "No" on Pfizer (PFE) Booster for 16+ Age Group, 2 Yes 16 No
- Jefferies Raises Price Targets on Alphabet (GOOGL) and Facebook (FB) as They Are Still Inexpensive Relative to Growth, Reiterates Snap (SNAP) as a Best Growth Idea
- Tesla (TSLA) Could Deliver 900K EV Units This Year and 1.3M in 2022 - Wedbush
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: BofA Securities Starts Rockley Photonics Holdings Ltd (RKLY) at Buy, Sees 56% Upside
- Innergex Renewable Energy (INE:CN) (INGXF) PT Raised to Cdn$28 at National Bank Financial
- Rio Tinto Plc. (RIO:LN) (RIO) PT Lowered to GBP54.10 at Morgan Stanley
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Earnings
Related EntitiesTwitter, Susquehanna International Group of Companies, Pre Market Movers
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!