Baird Top Analyst Shares Two Cents on Twitter, Inc. (TWTR) Following Alphabet Inc (GOOGL) Acquisition of Fabric Developer Platform
Twitter Inc (NYSE:TWTR) revealed today that its app development platform known as Fabric is to be acquired by Alphabet Inc (NASDAQ:GOOGL). Though top analyst Colin Sebastian sees this as a sensible move on the social media giant’s part considering its recent transition towards core services and platforms, he remains sidelined on the bigger picture.
As such, the analyst reiterates a Neutral rating on shares of TWTR with a $17 price target, which aligns with current levels.
Sebastian notes, “Twitter is kicking off the new year with greater focus on the core application and supporting features, such as investing in ad products (including MoPub) and in the ramping of additional streaming partnerships in an effort to fuel new user growth and strengthen advertiser engagement. Given sluggish user and revenue trends, and what appears to be limited interest from potential acquirers at current enterprise value, we can understand management’s increased emphasis in these areas.”
Ultimately, “Fabric’s development tools, including the top-rated Crashlytics and Answers app stability kits, grew to reach nearly 2.5 billion active mobile devices in two years. Despite the early success of Fabric, we believe Twitter’s decision to divest makes sense as part of a broader strategic move toward the company’s core services,” Sebastian concludes.
Colin Sebastian has a very good TipRanks score with a 74% success rate and a high ranking of #18 out 4,350 analysts. Sebastian garners 17.0% in his yearly returns. When recommending TWTR, Sebastian earns 0.0% in average profits on the stock.
TipRanks analytics exhibit TWTR as a Hold. Out of 21 analysts polled by TipRanks in the last 3 months, 3 are bullish on Twitter stock, 13 remain sidelined, and 5 are bearish on the stock. With a loss potential of 3%, the stock’s consensus target price stands at $16.57.