Twitter Isn't Very Attractive Right Now And This Analyst Is Surprised It Has So Many Possible Suitors
salesforce.com, inc. (NYSE: CRM), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) and Walt Disney Co (NYSE: DIS) are all said to be vying to buy out Twitter Inc (NYSE: TWTR) - and this is "surprising" to Neil Doshi of Mizuho securities.
Speaking as a guest on CNBC, Doshi admitted he's "pretty surprised" there are so many potential suitors to acquire Twitter at its current valuation. After all, Twitter is a company whose fundamentals have been "down very significantly." Specifically, the company's revenue is growing at just 20 percent, "well below" levels seen a year ago and its user base has "stalled."
Doshi said the issues surrounding privacy on Twitter's platform remains.
Doshi was asked by CNBC if it's at all possible that the aforementioned companies would find justification in acquiring Twitter simply on the basis they have the cash to do so. For instance, Microsoft already dished out billions of dollars to acquire LinkedIn and by some accounts Disney overpaid for Lucasfilm.
The analyst answered that LinkedIn is a "great asset" with a growing user base and a "significantly" faster revenue growth rate compared to Twitter. In addition, Lucasfilm "definitely has value" given its many intellectual property rights.
Twitter has neither of those characteristics.
Shares traded recently at $23.58, up 24 percent over the last five trading sessions.
Latest Ratings for TWTR
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Deutsche Bank | Initiates Coverage On | Hold | |
Mar 2022 | Benchmark | Initiates Coverage On | Hold | |
Feb 2022 | Wells Fargo | Maintains | Equal-Weight |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: CNBC Mizuho Securities Neil Doshi Twitter AcquisitionAnalyst Color M&A Analyst Ratings Media Best of Benzinga