David Einhorn Takes a Liking to Twitter (TWTR)

In his fourth-quarter letter to investors, David Einhorn of Greenlight Capital disclosed the fund has initiated a new position in Twitter (NYSE: TWTR) at an average price of $21.59.

Einhorn explained that despite a massive user base and broad reach, Twitter has an enterprise value of about 2% of Facebook (NASDAQ: FB).

The hedge fund manager said new management has improved the user experience, which has led to rapid growth in number of users and time spent on Twitter in 2017. "As a result, we believe TWTR will have a pitch to advertisers in 2018, which should lead to revenue growth," he said.

In addition, restructuring action taken over the past year will allow much of the revenue to fall to the bottom line, as they expect Twitter to begin to close some of the 25% margin gap versus its social media peers.

StreetInsider Premium first published a variation of this article at 10:32AM ET. Try StreetInsider Premium for two weeks free here.

You May Also Be Interested In

• Hilton Grand Vacations approves new $600M share repurchase plan
• TikTok explores peer-to-peer payments via direct messages
• Vishay launches compact proximity sensor with 5 μA idle current