Nomura Securities Remains Neutral After Looking into Twitter's (TWTR) New Live Streaming Product
Nomura Securities maintains a Neutral rating and $39.00 price target on Twitter, Inc. (NYSE: TWTR) with the belief that the new live video streaming product, Periscope, has potential. Analyst Anthony DiClemente says that the Periscope has brought in more than 2mn users.
DiClemente commented, "We believe that Twitter’s live video streaming product, Periscope, has the potential to bolster to Twitter’s core video offering and represent an important strategic asset in the social video space. We believe there are plenty of possible use cases for Periscope, and that as such, Periscope has a unique potential to compete for branded ad dollars. Our take is that initial user growth and engagement trends have proven very encouraging; we estimate that since its March 26th launch, Periscope has garnered more than 2mn users who have streamed more than 3mn hours of content. Engagement dynamics around major live events support the view that Periscope proves highly complementary to Twitter’s core use case. While it remains too early to model revenue contribution, we attempt to quantify the Periscope opportunity through a discussion of three key areas: 1) addressable user base, 2) engagement dynamics, and 3) potential monetization scenarios. We conclude that Periscope could already be worth $1bn inside of Twitter."
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Shares of Twitter, Inc. closed at $37.00 yesterday.