The social media giant is expected to hit a seven-year high on Wednesday after reports of its fourth-quarter earnings on Tuesday, eroding analysts' expectations over the past few days, a concern on Wall Street recently The company's fast-growing growth could result in the platform's decision to ban former President Donald Trump.
As of 11:15 am, Twitter shares were rising nearly 9% on Wednesday, reaching a high in early February and raising the firm's market cap to $ 51.5 billion - as a public-facing firm. A level unseen since the early days of January 2014.
In a note to clients on Wednesday morning, Pivotal Research analyst Michael Levine raised his price target on Twitter shares to $ 77.25, giving the stock a "meaningful uptick" in the current quarter as a result of $ 1.2 billion in last-quarter revenue of 25. % Increased. About 12% higher than analysts.
The firm's total income of $ 1.3 billion also eclipses analyst expectations, climbing about 30% during the year and 10% above average analyst expectations; Earnings per share of 38 cents were almost 25% above the average forecast.
A large group of other firms, including MKM Partners, JPMorgan and KeyBank, reiterated their buy or overweight rating on Twitter stock on Wednesday, but the firm's average price target of $ 50 (from the 36 analysts issuing such guidelines) is still around. 30% is shy. The current price is hovering around $ 65.
Piper Sandler analyst Thomas Champion, whose price target is in line with current levels, said the US election helped the firm grow its fourth-quarter user base, growing by 27% year-on-year to 192 million daily active users. Has exceeded 5 million. Pre quarter.
On Wednesday morning on CNBC, Twitter CFO Ned Segal said that former President Trump would never be allowed to return to the stage, even if he ran for the presidency again in 2024. Twitter banned Trump from his platform and removed all his tweets on 8 January. The rioters stormed the Capitol two days later, while lawmakers worked to authenticate President Joe Biden's election victory. The firm cited the "risk of further escalation of violence" as the reason behind the ban, but public figures and even some European government officials criticized the move as threatening for "freedom of opinion" Did not stop from doing.
"Both earnings call and analyst call back, we felt that management acted with a swagger and confidence that we haven't seen in a while," Levin said Wednesday. "[One] of the biggest bear cases on Twitter for months has been that user development is going to happen after Trump" and once the firm starts cycling through shelter-in-place restrictions Which initially enhances user development. The second and third quarters, but Levine notes those things "are clearly not happening based on current visibility."
$ 14 billion. According to Forbes, how much does Jack Corsi, the cofounder and CEO of Twitter, cost. Although the bulk of his fortune is now tied up in shares of Fintech Square, which he also turned down, his net worth jumped nearly $ 100 million as a result of Wednesday's Twitter rally.
Condemning last week's violence in Washington, DC, several high-profile European leaders, including German Chancellor Angela Merkel, have objected to social media companies such as Facebook and Twitter, and suggested that it ban their president Violates the right to free speech and argues that governments, not private companies, should be in charge of regulating Big Tech.
Merkel said Monday through a spokesman that Trump's Twitter ban was "very problematic" and that the "fundamental right to legal freedom" should be determined by the rule of law and government, not according to social management's decision. Media platform. "
Thierry Breton, the European Commissioner for the Internal Market and a key figure in efforts to regulate big technology in Europe, wrote in Politico that "the fact that a CEO can pull the plug on POTUS's loudspeaker without any checks and balances . "
Breton said it reaffirmed the "power of these platforms" and highlighted the shortcomings of Washington and other governments in regulating the digital space, which he said is currently "reminiscent of the Wild West."
France's finance minister, Bruno Le Maire, said he was "shocked" by Twitter's decision to ban Trump, adding that "digital regulation should not be carried out by the digital oligarchy ... (and) sovereign people, governments" And there is a case for. " Judiciary."
UK Health Secretary Matt Hancock said tech companies are now "making editorial decisions," adding that it is very clear that platforms "are the ones to choose and that should not have a voice on the platform."
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