Hedgeye Internet & Media sector head Hesham Shaaban used to be one of the biggest bears on Wall Street when it came to shares of Twitter (TWTR). Not anymore.
Twitter is now one of Shaaban’s favorite long ideas since the company’s strategic turnaround has revived its business model. Wall Street hasn’t come around just yet.
“Twitter disappointed a lot of investors dating back from the IPO all the way through mid-2016,” Shabaan explains in the clip above.
“Because of that, it’s taking the Street a long time to warm up to the idea that Twitter self-corrected. When we look at what had happened to Twitter and where they are today, it’s two completely different stories.”
Twitter has been diligently retooling its business model since 2016. Most importantly, the company has changed the way ads are presented on its platform. That change should continue to drive revenue growth and boost profitability.
The stock is beginning to reflect these changes. It’s up +19% so far this year.
Watch the full clip above for more.