Twitter Inc (TWTR)’s Bird Has 3 Reasons To Fly Higher By Doug Anmuth of JPMorgan Chase & Co. (JPM)

Twitter Inc (NYSE:TWTR) is just flexing its wings for a long flight according to JPMorgan Chase & Co. (NYSE:JPM)‘s Doug Anmuth, who believed that the management of the company is more focused now than it had ever been. Anmuth shared his views on a telephonic interview with CNBC. He is an internet analyst with JPMorgan Chase & Co. (NYSE:JPM).


Anmuth saw the prospective improvement in Twitter Inc (NYSE:TWTR)’s revenues for three main reasons, two of which were related directly to monetization. According to the JPMorgan Chase & Co. (NYSE:JPM) analyst future prospects for Twitter looked bright on account of improving margins.

“[…] They have changed the number of steps for the sign up process basically cutting that in half. We think that is making a difference. Monetization, we are getting good feedback, certainly from advertisers and agencies in terms of money moving towards twitter […] and we think that there is a lot of room to grow on monetization with international self server rich media ads also feels like as a monetization there is good margin expansion potential ahead […],” said Anmuth.

By  JPMorgan Chase & Co. (NYSE:JPM)’s Internet analyst didn’t see Twitter Inc (NYSE:TWTR) as crossing the 1 billion monthly active users mark, but he did see it as being close to the the 600 million users mark by the end of 2018. Currently Twitter Inc (NYSE:TWTR) has about 270 milion monthly active users. This would of course mean more advertisement for the 140 character messaging based social media platform.

With a market cap of about $32 billion, Twitter Inc (NYSE:TWTR) is hardly comparable to Facebook Inc (NASDAQ:FB), in terms of size which has a market cap of $202 billion. However, more than the size the two social platforms serve very different purposes, but many analysts draw this comparison which makes them underestimate Twitter’s potential. JPMorgan Chase & Co. (NYSE:JPM)’s Doug Anmuth, however, didn’t fall into that trap.

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