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Here's Why Investors Should Bet on Twitter (TWTR) Right Now

Twitter TWTR is firing on all cylinders. This Zacks Rank #1 (Strong Buy) stock has gained 29.4% year-to-date outperforming the S&P 500 Composite’s decline of 1.2%. The company’s focus on adding plethora of new features and security initiatives that are boosting user engagement level are the primary growth drivers.

Live Streaming Deals & New Features Boost Ad Dollars

Twitter’s ad revenues (85.7% of total revenues) are expected to witness an improvement owing to its live streaming push. Additionally, the company has tried to grab live video deals and strengthen its streaming content portfolio.

Currently, Twitter has deals with Disney’s DIS ESPN, NBCUniversal, Viacom, Activision Blizzard and others. The company also offers more live sports, which includes weekly live MLS and MLB games.

Further during the third quarter, Twitter signed 11 new live-streaming, highlight, Amplify, and video-on-demand agreements (out of which, eight are from international markets).

Markedly, Twitter remains an invaluable source for news outlets and regular users to distribute instant information. This has helped the company’s other revenue source, its data licensing business, see its revenues jump 25% to $108 million.

Twitter, Inc. Revenue (TTM)

Twitter, Inc. Revenue (TTM) | Twitter, Inc. Quote

Earnings Estimates Increasing

Over the last 60 days, the Zacks Consensus Estimate for its fourth-quarter fiscal 2018 earnings has increased 19% to 25 cents per share, reflecting year-over-year growth of 31.6%. Revenues stand at $864.9 million, up 18.2% year over year, over the same period.

Over the last 60 days, the Zacks Consensus Estimate for its fiscal 2018 earnings has increased 11.3% to 79 cents per share, reflecting year-over-year growth of 79.6%. Revenues stand at $2.98 billion, up 22.1% year over year, over the same period.

Moreover, in the trailing four quarters, Twitter outpaced the Zacks Consensus Estimate for earnings in three and met estimates in one, the average beat being 29.76%.

Key Picks

Some other top-ranked stocks in the broader technology sector are Himax Technologies, Inc. HIMX and Ubiquiti Networks, Inc. UBNT, each sporting the same bullish rank as Twitter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Himax Technologies and Ubiquiti Networks is projected to be 25% and 14%, respectively.

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The Walt Disney Company (DIS) : Free Stock Analysis Report
 
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