Twitter Inc (NYSE:TWTR) stock was reiterated a ‘Hold’ by Canaccord Genuity’s Michael Graham yesterday morning after the analyst calculated that Twitter’s Q4 monthly active users [MAU] net adds could be as high as 4.4 million, above his current estimates of 3.5 million and consensus at 1.6 million.
The new MAU as a number is still slow growth-wise for Twitter but reduces some risk on the equity which is down nearly 27% on a year-over-year basis. In a note picked up by Barron’s Tiernan Ray, Graham, who also kept an $18 per share price target on the Twitter stock, predicts that based on survey of the platform’s user base across about 100 countries, Q4 growth should hit 5.3% sequentially by quarter-end, up from 4 percent sequential growth in Q3.
It should be noted that if Twitter is to grow its user base, it needs to do more on the products front in terms of innovation. In today’s fast-evolving social media ecosystem releasing new features frequently to keep user interest is essential for growth and the only way to develop a competitive edge. Unfortunately, since 2014 Twitter’s core product team has been run by four different people, including its sixth VP of Product in four and a half years, creating further instability for the struggling company. Needless to say, with serious concerns about profitability (or rather, lack thereof), things have got to change and fast for the microblogging platform if it wants to stay afloat.
Twitter Stock Action
On Tuesday, Twitter stock printed a lower than average trading volume with the issue trading about 8.8 million shares, compared to the average daily volume of 22.4 million. The stock began trading this morning at $18.31 to finish the day even with the prior days close of $18.23. On an intraday basis it got as low as $18.14 and as high as $18.50, within a 52-week range of $13.73 to $26.25.
Twiter shares have advanced 3.70% in the last 4 weeks while declining 8.53% in the past three months. Over the past 5 trading sessions the stock has lost 0.38%. The Palo Alto, Calif.-based company, which is currently valued at $12.90 billion, has a median Street price target of $17 with a high target of $26.
TWTR is down 21.22% since January 1, and 56% since November 15, 2013.