Monday, 15th December, 2014, was a good day for Twitter Inc (NYSE:TWTR)’s stock since it recorded an increase in value courtesy of a positive rating by JMP Securities. As per JMP, the go-ahead was based on six major factors and an upside target of $49 was also mentioned in the report, causing the stock to shoot up by 1.6% during Monday’s trading session.
For a stock which has been plunging since the last six months, this rating is akin to a sliver streak in an otherwise dark cloud. In spite of the fact that Wall Street refused to share the enthusiasm and labeled Twitter as a ‘Sell’ along with grade ‘D’, it has not dampened the momentum generated by the JMP Securities rating.
CNBC broached the subject with ‘Fast Money’ traders and each of them took an individual stance on the manner in which Twitter Inc (NYSE:TWTR)’s shares were performing and where they were likely to be headed. The most obvious observation was that it happened to be a stock which had been down in an up market and now was up in a down market. With product enhancements, profit margins and differentiated content, Twitter did look strong enough to pull through its bearish phase.
What was mentioned several times during the discussion was the fact that Twitter Inc (NYSE:TWTR) was going through an early phase of modernization and hence could look forward to a bright future up ahead. Although it is still way behind its competitors, particularly Facebook, it is just a matter of time before it recuperates from its internal problems and embraces its bullish phase again.
While experts seemed to be impressed by Anthony Noto, Twitter’s CFO, everyone was unanimously critical of CEO Dick Costolo whom they felt should be doing more to promote the company, like Mark Zuckerberg was promoting Facebook. An option of management change being better for Twitter Inc (NYSE:TWTR)’s long-term growth prospects seemed to be hanging in the air.
This article has been written by Vinita Basu.