Twitter Should Spend More
Twitter recently took a hit from Evercore issuing a Sell on the stock due to worries about underspending on R&D. The social media company already ramped up spending, and sector data points support the company spending more on R&D. Additional R&D spending that returns revenue growth to 20% places a $50 price target on the stock. After a Q3 issue with ad products, Twitter (NYSE: TWTR ) dipped below $30 on suggestions the company has underspent in the last few years. The numbers don't really support that the social media site underspent, but regardless, the company has the cash and the ability to substantially increase investments in research and development to build for the future. My investment thesis remains highly constructive on the stock around $30, with an enterprise value down to only $20 billion. Read the full article on Seeking Alpha. Update - December 2 With CEO Jack Dorsey announcing plans to move to Africa in 2020...