Twitter stock gains 9% after Bernstein analyst ends bearish call on the stock despite COVID-19 hit to ad revenue.
Although Twitter’s advertising is taking a tough hit due to coronavirus in the near-term, Bernstein analysts upgraded the Twitter stock to “market perform” from “underperform” on Wednesday.
Analyst at Bernstein, Shmulik wrote that the company’s two primary revenue streams are product launches and high-profile events, both of which are on pause due to the COVID-19 outbreak. He remains warming to the stock a bit more due to a demand for information during the pandemic as well as a cheaper valuation as the shares have recently underperformed.
Over the past month, Twitter shares are down 23 percent as the S&P 500 index has lost 11 percent. The company sits at the fulcrum of news, and conversation during this exceptional global event, Shmulik wrote, and the sorts of marquee events that drive the revenue are just postponed not lost.
The analyst also points to signs of life for the tech company’s mobile-app promotion, or the MAP product that had been a source of concern in recent earnings reports. Shmulik upped his price target from $27 to $29 in his Wednesday note to clients.