CHICAGO, Oct. 31, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Twitter, Inc. (NYSE:TWTR-Free Report), Facebook (Nasdaq:FB-Free Report), Google (Nasdaq:GOOGL-Free Report) and DTS Inc. (Nasdaq:DTSI-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
More Top Officers Quit at Twitter: Time to Worry?
Following the departure of former Chief Operating Officer Ali Rowghani and head of Twitter news efforts, Vivian Schiller, Twitter, Inc. (NYSE:TWTR-Free Report) witnessed the departure of some more top brass. According to latest reports, the company's lead of Analytics, Adam Kinney, and VP of Engineering, Jeremy Gordon have handed in their papers in response to a dispute over the executive team's strategy.
Following the news, Twitter's share price dropped nearly 4% on Wednesday. While the company is struggling to improve engagement, which is leading to stagnation in its business growth, internal management issues continue to make headlines making the company's growth outlook bleak.
Reportedly, Gordon announced the end of his two-year tenure at the company through a tweet. In the case of Kinney, however, CNBC flashed the news, though there was no public announcement from the company. We believe that these departures were the result of the slowdown in Twitter's user growth.
However, Twitter's ability to attract advertising revenues, despite significant competition from Facebook (Nasdaq:FB-Free Report), Weibo and market leader, Google (Nasdaq:GOOGL-Free Report), will be a key factor determining its growth.
Recently, the company reported robust growth in advertising revenues in the third quarter that was driven by a 150% year-over-year surge in ad engagements, reflecting higher quality ads. Timeline views increased 14% year over year to 181 billion. As a result, revenues soared 114.3% to $361.3 million on a year-over-year basis.
However, the company continued to report a loss, though much narrower than in the year-ago period. Hence, we believe that the impact of any adverse news from management would likely weigh on the company's market valuation, which is already trending downward given the growth concerns.
Currently, Twitter has a Zacks Rank #2 (Buy). A better-ranked stock in this sector is DTS Inc. (Nasdaq:DTSI-Free Report), which sports a Zacks Rank #1 (Strong Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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