Twitter Inc (NYSE:TWTR) presented an impressive line-up of ad products and technology during its analyst day, according to analysts at Morgan Stanley.
The stock price of the microblogging company is up more than 3% to $41.38 per share at the time of this writing around $1:04 P.M. in New York today.
Twitter’s MoPub can deliver compelling ROI
Morgan Stanley analyst Benjamin Swinburne and his team noted that the ad products of Twitter Inc (NYSE:TWTR) seemed working for advertisers. They observed that its ad products have high ROI and cost per engagement based ads that are uniquely native and mobile.
Swinburne also emphasized that they left the company’s analyst day with a better understanding MoPub, Fabric and Crashlytics and its process to deliver value for developers and position Twitter Inc (NYSE:TWTR) in mobile advertising.
According to the analysts, “Content distribution beyond Twitter sites creates massive reach for direct response and brand advertisers alike. We believe the platform can deliver on compelling ROI compared to other digital platforms.”
Swinburne believed that Twitter’s aspiration for MoPub’s value within the mobile ecosystem is comparable with Facebook Inc (NYSE:FB) on its Atlas. According to them, Facebook’s Atlas strategy seems to be “leveraging on user data first” while Twitter’s MoPub aims to address and serve the developers first.”
According to them, the microblogging company hopes to leverage its platform by building out a partnership with mobile developers to engage with 3 billion users in other growth opportunities.
User engagement
Swinburne and his team said they like the company’s strategy in improving its consumer product by taking advantage on its real-time nature particularly the search and breaking news features.
Twitter Inc (NYSE:TWTR) stressed those improvements to re-engage users who are inactive or at risk of becoming inactive. The analysts opined that news alerts and real-time search features seemed fairly incremental, and it is uncertain whether the products could drive MAU additions above the current optimistic expectations.
Twitter Inc (NYSE:TWTR) aims to achieve a MAU CAGR growth rate at or above the IDC global forecast of 19% for socially connected mobile users. The analyst believed that Twitter’s MAU adds in the United States likely peaked this year. They also noted that its historical MAU growth continues to suggest a much slower pace compare with its peers in terms of global user penetration.
Swinburne and his team estimated Twitter’s MAU growth rate at 16% CAGR from 2013 to 2018.
