Twitter Inc. shares jumped Friday after Stifel analysts initiated coverage of the blurb-based business with a "Buy" rating and $75 price target.
Analysts Jordan Rohan and Michael Purcell said in a research note that Twitter is "the most powerful, flexible, and disruptive of the social media platforms." They said this value is hard to quantify and does not yet show up in the company's earnings. The analysts believe the company will harness the power of its position over time.
Rohan and Purcell said that Twitter, which they note has 232 million users versus Facebook's 1.2 billion, has years of user growth ahead. They also pointed out that the company's advertising revenue is in its infancy, estimating that its ad revenue will grow six-fold over the next four years.
Shares of Twitter jumped 4 percent to $62.93 in afternoon trading. Its stock has price has more than doubled since its IPO in November at $26.
- Investment & Company Information
- Michael Purcell