Our Internet & Media analyst Hesham Shaaban is hosting an institutional Black Book presentation detailing his new Best Idea long call today at 2pm ET.
Email sales@hedgeye.com for access.
KEY POINTS OF DISCUSSION
- BACKGROUND (2014-2016): We estimate that the series of events that ultimately led TWTR to restructure was the result of self-inflicted wounds on the part of an unsustainable monetization strategy. We will break down the history of its business model to provide context around why we're now getting constructive.
- WHAT'S CHANGED (2017): We originally viewed TWTR’s decision to restructure as a cop-out preempting an inevitable decline in ad revenue. Now we realize that mgmt has also been right-sizing its model and pivoting its monetization strategy in the process. We'll run through the underlying detail, and why we believe the model is now built for sustainable growth.
- LOOKING FORWARD (2018): We suspect TWTR could return to double-digit ad revenue growth by 2H18, if not sooner. Further, after vetting what we had previously viewed as the two biggest risks to the story (users and advertiser demand), we now feel more comfortable heading into 2018 given the collective growth driver between the two. More detail on the call.