Halftime Report

Monday - Friday, 12:00 - 1:00 PM ET
Halftime Report

BTIG: President gives Twitter a second chance


Shares of Twitter rose more than 2% during Wednesday's trading session after BTIG analyst Rich Greenfield upgraded the stock to "buy."

It's been a bumpy road for the San Francisco-based company. While shares are up 25% over the past year, the stock has fallen 75% since its all-time intraday high of $74.73 in December of 2013.

The social media company has struggled to grow its monthly-active-users – a key metric when comparing it to competitors Facebook and SnapChat – and some of its recent innovations (such as the "moments" feature), haven't been popular with users.

But Greenfield believes the tide may now be turning for Twitter, thanks in part to President Trump.

He joined the "Halftime Report" to make the case for why the stock is a buy, and how it's going to reach $25.

BTIG: Trump giving Twitter a second chance

Greenfield's upgrade of Twitter centers on the growing number of daily active users that the site has reported in the last few months.

He credits Trump with giving Twitter a "second chance" given the President's frequent use of the platform.

Greenfield believes that we are seeing "the early signs of engagement picking up" and that "there is clearly renewed interest in Twitter."

More users translates to more advertising dollars, which will boost Twitter's bottom line, Greenfield argues.

He also points to key product changes, such as the "explore tab," as reason to buy the stock.

Trump has put Twitter back on the map
Richard Greenfield
BTIG Analyst 

Josh Brown owns the stock and believes in the long-term viability of Twitter, but unlike Greenfield he doesn't see President Trump as an upside catalyst.

Brown argues that the increase in users since the election won't necessarily lead to growth in advertising dollars because this isn't a new phenomenon.

Twitter has previously seen an uptick in users tied to specific events, but that hasn't always translated to long-term engagement or a sense that advertising is really working.

Additionally, he points out that all of this might be fleeting – there's another election in four years, so this rate of growth tied to President Trump might not be sustainable.

Like Brown, Steve Weiss believes that the users who have signed up since the election will not convert to long term tweeters.

"In terms of the people that weren't on it [Twitter] before that are coming on it now because of that curiosity about what Trumps' saying, they'll quickly turn it off again…I just don't think it's sustainable to get the advertising dollars," he said on CNBC's "Halftime Report."

Twitter is set to report earnings Thursday before-the-bell, and analysts expect EPS to come in at $0.12 on $739.7M in revenue.

Josh Brown owns Twitter.