Twitter Is Showing The Public What It's Good At

Twitter was upgraded on Friday from neutral to buy by Goldman Sachs analyst Heath Terry, with a price target of $35, up 51.6% from Friday's close of $23.09, citing its positive metrics before and now during the coronavirus pandemic that "leave Twitter well positioned to exit this crisis stronger than it entered it." Mr. Terry is correct in that the pandemic has shown the distinct niche Twitter occupies in contrast to other social media platforms and online advertising giants such as Facebook, Google, Instagram, Snapchat, and otherwise, as Twitter has become a major source of real-time, crowd-sourced, worldwide information since the start of the pandemic.

People Are Relying On Twitter Like Never Before

Twitter has been used amid the pandemic for everything from spreading reports, news, and stories from medical professionals to journalism headlines to public announcements by institutions and government agencies to people sharing stories of how to adapt to life under lockdown. Even with an active fight by the platforms against incorrect and disinformation, as Dr. Raja, Executive Vice Chair of Mass General's Department of Emergency Medicine told CNN, "Twitter is the best way to get medical information out."

What the pandemic has shown about Twitter is that there are many situations where communication with, or even viewing information and updates from, complete strangers in a relatively easy-to-search-and-retrieve format is beneficial and far better than being merely confined to a circle of friends and acquaintances as in some other social networks. Even as Twitter states that it, like many other online advertising companies, will see a hit to its ad revenue as its business customers spend less nonetheless it has undoubtedly gained the attention, use, and appreciation of an immense segment of the public. Furthermore, and importantly, this increase in usage, trust, and adoption isn't just among users in the United States but among its essential international user base as well as coronavirus sweeps across the world.

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Disclosure: I am long TWTR.

Disclaimer: These are only my opinions and do not constitute investment advice.

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