Hey value guys, wanted to talk a bit about Twitter. Was reading this article, which I guess both longs and shorts could enjoy:
http://lowercasecapital.com/2015/06/...tter-can-be-2/
It's from June of this year, so still recent enough. It was written
by this guy, whom I think has some pretty good qualifications in the industry.
Now admittedly he's got a lot of reason'$ for wanting twitter to do well, he doesn't hide how invested his fund is in it. It's a great (but long article), and I'll coles a few things from it here for people not willing to read it all:
What Is Going Well At Twitter?
The pace of product development has accelerated dramatically.
Twitter has shown a willingness to take more risk in making changes to the core product.
Revenue is growing at 74% year over year. (There is no public company of that scale growing anywhere near as fast.)
The management team has stopped selling their stock.
The Google deal is a big win.
Periscope and TellApart are strong acquisitions. (Periscope may prove to be the most important deal Twitter has ever done.)
What’s Not Going Well At Twitter?
New user growth has stalled.
Almost one billion users have tried Twitter and not stuck around.
Direct response advertising has fallen short of hopes.
Wall Street’s confidence in the management team has diminished.
Twitter has been unable to convince investors of its potential upside.
He then proceeds to outline a number of their pain points, and how he feels they have a chance at turning them around. I'd briefly tried to tackle these 2 years ago and realized twitter would probably have to pivot into them soon anyway (ease of use, channels, locations, way better use to participate live etc...).
All this to say that at some point with the right pivots, I've got to think twitter is a great opportunity for the buy hold crowd. Anyone care to chime in?