Guggenheim analyst Michael Morris initiated coverage of both Twitter Inc.
and Alphabet Inc.
shares at buy on Thursday, while starting coverage of Facebook Inc.
and Snap Inc.
shares at hold. Morris argued that Twitter “will continue to bolster the user experience” through efforts to improve the “health” of its platform, and he sees the company as well positioned to capture greater advertising spend. As for Alphabet, he wrote that the company’s “unique combination of intellectual property, employee talent and financial resources” should help it exceed growth expectations. Morris took a more muted view of Snap’s prospects, writing that the company needs to improve its Android app in order to deliver “reinvigorated” growth. He’s cautious on the company’s original-video efforts given steep competition in the space from deep-pocketed rivals. Morris expects that “challenges related to privacy, regulation, operations and monetization” will continue to impact Facebook and weigh on investor sentiment. All four stocks are down in Thursday’s session, with Snap shares pacing the decliners, off 4.2%. The Global X Social Media ETF
is down 2.7% on the day, and it’s fallen 14% so far this year. The S&P 500
has dropped 0.7% in that time.
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