Twitter Inc. (NYSE:TWTR) woes in the social media space can only be offset by a merger with Google Inc. (NASDAQ:GOOGL) according to CNBC’s, Dan Nathan. Despite remaining long on the stock, the analyst admits the company is facing dire challenges on the lack of vision and strategy in the social media space.
“As a public company with a $25 billion market cap juxtaposed to Facebook Inc (NASDAQ:FB)’s acquisition of WhatsApp for $22 billion. Twitter Inc. (NYSE:TWTR) is a very unique social media property and possibly a messaging application. To me I think there is massive scarcity value that is not being appreciated in the current price. I think Google Inc. (NASDAQ:GOOGL) should buy these guys,” said Mr. Nathan.
Nathan attributes Twitter Inc. (NYSE:TWTR)’s current woes in the social media space to a lack of social media strategy as well as a messaging strategy. A merger with Google Inc. (NASDAQ:GOOGL) according to the analyst could help resurrect the company’s fortunes with the development of new products
Timothy Seymour believes an entry into the stock on a long position at the current margins is highly justified as Twitter Inc. (NYSE:TWTR) stock price has been beaten down, making it extremely cheap. For the stock to trade at the$50 mark, Steve Grosso believes CEO; Dick Costolo will have to leave the company or Google Inc. (NASDAQ:GOOGL) acquires it in entirety.
“The downside is that this is a company that continues not to grow fast enough. Scale is very important for this guys, and we know social media is grabbing a lot of the advertising world but can these guys compete in scale? I am not sure they can although I tend to agree with the trade because it is so beaten down,” said Mr. Seymour
Twitter Inc. (NYSE:TWTR) did not have the best of runs in 2014 seen by its stock losing 40 % in value as well as investors raising concerns about active user’s numbers not increasing as expected. A move by Google Inc. (NASDAQ:GOOGL) to acquire the company or Costolo stepping down according to the Fast Money Crew could be one of the missing pieces that could propel the stock to the $50 mark this year.
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