4. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 94
Twitter, Inc. (NYSE:TWTR) is a microblogging and social networking company, where users interact via tweets. Twitter, Inc. (NYSE:TWTR) is in the early stages of experimenting with “shoppable tweets”, a term the company has coined for tweets that display products for sale, along with a shop button.
Twitter, Inc. (NYSE:TWTR) has the capacity to convert real-time conversation with an engaged and intentional audience into sales.
Loop Capital analyst Alan Gould lowered the price target on the stock to $65 from $84 but kept a Buy rating on the shares on December 1. The analyst stated that not many investors see potential for Twitter, Inc. (NYSE:TWTR) to generate 25% top line growth, raising an “unanswerable question” on margin outlook and overhang for the stock after Twitter, Inc. (NYSE:TWTR) indicated that expenses will grow beyond the 25% floor already in place with existing programs.
Cathie Wood’s ARK Investment Management is one of the leading Twitter, Inc. (NYSE:TWTR) stakeholders from the 94 hedge funds that were long Twitter, Inc. (NYSE:TWTR) in Q3 2021. ARK Investment Management increased its stake in the company by 12% in the third quarter, holding 13.78 million shares worth $832.47 million.
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.”
