Below is a chart and brief excerpt from today's Early Look written by Director of Research Daryl Jones.
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I’m going to take a step back from macro for a second though and give you a, quote / unquote, stock pick. Earlier this morning my colleague Andrew Freedman initiated a long call on Twitter ($TWTR). According to Andrew (or as we call him Freebird): "Twitter has been a perennial disappointment among investors since going public in 2013. Poor capital allocation, a lack of innovation, and privacy/security concerns have been a headwind to growth and monetization. However, we believe we are near a turning point in the Twitter saga following activist involvement and a renewed commitment to monetization. Investments Twitter is making in ad-tech and alternative forms of monetization today can create significant value over the next 12-24 months. Meanwhile, COVID has accelerated user growth and engagement, further adding to the information network's value. We see a path to 30-50% upside over the next 12-24 months as strategic initiatives bear fruit while ad-spend recovers and events return (e.g., sports, the Olympics, etc.). If management fails to deliver, we believe activist involvement limits downside." |
