- Twitter (NYSE:TWTR) ended up mitigating the biggest part of its decline today spurred by a Friday report about user account suspensions, and JPMorgan (NYSE:JPM) for one said to buy the dip.
- "We'd be taking advantage of the weakness," say analyst Doug Anmuth, who says a Washington Post report sowed "confusion" about whether removing 70M fake accounts would hit user numbers to be reported later this month. (h/t Bloomberg)
- Improving quality is critical for service health, he writes (there he's in agreement with CFO Ned Segal); and he believes a significant number of the suspended accounts were dormant more than 30 days and therefore don't end up as monthly active users.
- He still expects 2M net adds for Twiter's MAUs in a seasonally light quarter, vs. zero adds a year ago (and 6M net adds in Q1).
- The firm has a $50 price target, implying 13% upside from today's close. Shares closed down 5.4% today and are ticking up 0.1% after hours.
- Now read: Apple (NASDAQ:AAPL): 5th Best Still Great
Original article