Bullish sentiments on Twitter Inc (NYSE:TWTR) continue to increase even as respected JP Morgan Chase & Co. (NYSE:JPM) analyst Doug Anmuth affirms that the social network could see a 75% increase in its revenue this year. The sentiments come as a surprise as Twitter has been struggling in the social media space amidst stiff competition and weaknesses in attracting and retaining new users.
Anmuth affirms that Twitter Inc (NYSE:TWTR)’s efforts on the video front could be the driving force behind a 75% increase in revenue. . Twitter users can now directly post videos that are 30 seconds long versus 10 seconds previously.The Video service continues to see improvements in the wake of the company buying Periscope, a video streaming startup, as the company eyes the streaming of live content.
Twitter Inc (NYSE:TWTR) also seem to have borrowed a leaf from Facebook Inc (NASDAQ:FB) as uploaded videos can also be tagged, a popular feature in Facebook. Anmuth notes that sentiments have especially improved after an impressive fourth quarter, although skepticism about Twitters’ risk/reward remains very compelling. The analyst currently has an ‘Overweight’ rating on the stock with a 12-month share price target of $67.
The analyst also points out that it will be far-fetched to think that 30 second videos will do enough to cure Twitter Inc (NYSE:TWTR)’s enigma of people always signing up and never coming back. The enhanced video system should, however, go a long way in extending Twitter into more engaging areas other than the restricted 140- character tweets.
Barron’s also remains bullish on the stock reiterating that the company could transform and create an iTunes-like ecosystem that lets readers buy articles from publications while also creating digital libraries. Bullish investors can monetize Anmuth sentiments by selling Twitter’s June $42 Put that was bid at $2.33 as soon as the stock clocks the $47.04 mark according to Barron’s.
An impressive first quarter report should help boost Twitter Inc (NYSE:TWTR)’s stock price especially in the sale of the June $42 Puts. The risk of a possible decline remains low according to Barron’s, considering Twitter’s earnings over the past 90 days hasn’t budged. The Street expects the company to post earnings of four cents a share on revenues of $457 million.
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