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Is Twitter set for a comeback in 2018?

Is Twitter set for a comeback in 2018?
[Photo: NordWood Themes/Unsplash, Logo: courtesy of Twitter]

If we’ve learned anything from 2017, it’s that anything you think is a certainty probably isn’t.

Turn back the clock to one year ago, and you’ll see fatalistic headlines about Twitter’s outlook: The company continually reported dismal earnings and the stock consistently slid. More and more it seemed the once-competitor to Facebook and Google was just a third-rate social network that some media people and the president used.

Now things may be changing. In its latest report, analyst firm MoffettNathanson writes:

[W]e heard from multiple checks that Twitter’s results are stabilizing as its sales team has tightened its pitch as a brand messaging platform and live TV extension product. In addition, the platform is benefitting from the influx of dollars to social as advertisers are increasingly taking a portfolio approach to social budgets.

In short, advertisers are becoming more interested in the platform–both because it seems to be making a better case for itself and because the industry is becoming increasingly frightened of a Google/Facebook duopoly. Last week, other reports surfaced with positive Twitter outlooks.

At the same time, MoffettNathanson still lists Twitter as “sell.” The firm still believes the company’s stock valuation does not reflect its value, however it adds that it shouldn’t be “actively ‘shorting'” the company before its earnings. This analysis is clearly lukewarm on Twitter–but that’s a huge improvement from what people were saying about it a year ago.

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