What Wall Street Thinks Of Twitter's Disappointing Quarter

“Of Twitter’s 38M US DAU count, we expect around 10 million to 15 million opting out of ads tracking on iOS, further burdening the company’s much-needed DR revenue diversification,” Zgutowicz said.

With many advertisers targeting customers, Zgutowicz sees Twitter facing risks ahead. “We estimate at the low-end, nearly 25% of Twitter’s 38M mDAUS will no longer be targetable for 1-to-1 marketing.”

“The company’s revenue guidance incorporates conservatism around the pace of Brand spend,” Kessler said.

Twitter has existing execution challenges ahead making the stock a show-me story for Morgan Stanley's Nowak. “Execution on performance marketing still the key,” Nowak said.

Bank of America's Post calls the second-quarter guidance from Twitter confusion with a range lower than the street estimate. “While confusing guidance will be a warranted overhang, Twitter has had some notable volatility in results vs. guidance in prior quarters,” Post said.

Upside Ahead

Post said Twitter could surprise going forward and weakness in shares could offer an entry point for investors with a strong second half coming and trading at a significant discount on a price to sales basis against mid-cap peers.

“With product updates rolling out over the course of 2021, we believe there are catalysts ahead,” Patterson said.

TWTR Price Action

Shares of Twitter are down 15.16% to $55.22 at market close Friday.

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