4. Twitter, Inc. (NYSE:TWTR)
Point72 Asset Management’s Stake Value: $274,004,000
Percentage of Point72 Asset Management’s 13F Portfolio: 1.20%
Number of Hedge Fund Holders: 94
Twitter, Inc. (NYSE:TWTR), a microblogging and social networking platform, is one of the top stocks to buy according to billionaire Steve Cohen, with his hedge fund boosting its stake in Twitter, Inc. (NYSE:TWTR) by 148% in the third quarter. Point72 Asset Management owns 4.53 million Twitter, Inc. (NYSE:TWTR) shares, worth $274 million, representing 1.20% of the firm’s total Q3 securities.
Twitter, Inc. (NYSE:TWTR) announced financial results for the quarter ending September 2021 on October 26. The company posted a loss per share of $0.54, missing estimates by $0.72. The revenue totaled $1.28 billion, up 37.13% from the preceding year quarter, surpassing estimates by $1.02 million.
Loop Capital analyst Alan Gould lowered the firm’s price target on Twitter, Inc. (NYSE:TWTR) to $65 from $84 but kept a Buy rating on the shares on December 21. The analyst stated that not many investors see potential for the company to generate 25% top line growth, raising an “unanswerable question” on margin outlook, particularly after Twitter, Inc. (NYSE:TWTR) indicated that expenses will grow beyond the 25% floor already in place with existing programs.
In Q3 2021, 94 hedge funds were long Twitter, Inc. (NYSE:TWTR), up from 89 funds in the prior quarter. Lone Pine Capital, the largest Twitter, Inc. (NYSE:TWTR) stakeholder, increased its stake in the company by 118% in the third quarter, holding a $1.30 billion position.
Here is what Greenwood Investors has to say about Twitter, Inc. (NYSE:TWTR) in its Q3 2021 investor letter:
“Being entrepreneurial, by definition, means taking the path untraveled, and heading into the unknown with daring boldness. Offense playbooks, by design, must take competition by surprise. Coming from a humble place with brands and companies that were ridiculed by competitors, when Sergio put medium-term plans out to the market, they were not timid. He would always aim higher than anyone, especially his competitors, believed he and his team could reach. And while not every target was always achieved, the formidable results speak for themselves.
This past earnings season, as Twitter was the only social media company to deliver on guidance while also confirming the quarter ahead to be at least as good, the stock sold off materially as its monetizable daily active user (MDAU) targets in the medium-term were called into question. While founder Jack Dorsey is clearly unafraid to look foolish to the public, or even in front of congress, he also manages multiple businesses at the same time. Competitors openly make fun of him. But his team is exceptionally loyal to him, and they have set out very ambitious targets for themselves over the next few years. The recent sell-off in Twitter shares was like deja vu all over again, as I reminisced about the Fiat capital markets day in 2014, fittingly on Twitter in this tweet thread. With its product and revenue servers rebuilt, it can now innovate and launch new ad formats faster than ever before. We look forward to the Twitter team pressing its offense strategy as a major peer loses focus on its core business.”
