We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Twitter Sinks as Citron Short Positions Flaring Up Distrust
Read MoreHide Full Article
Twitter shares fell 12% to close at $28.07 on Mar 27, after Citron Research announced that it’s taking a short position on the stock.
Per Bloomberg, Citron believes that increasing contribution from data licensing business makes Twitter vulnerable to any “potential privacy regulation” following social media giant Facebook’s data leak debacle.
In the last reported quarter, data licensing & other revenues grew 10% on a year-over-year basis and accounted for almost 12% of Twitter’s total revenues.
Although Twitter has stated that its data business doesn’t sell direct messages (DMs), contrary to Citron’s report, the share price plunge reflected investor scepticism, which was primarily fuelled by lack of trust.
Twitter shares were down 1.7% in pre-market trading.
Loss of Trust Hurts Social Media Stocks
Since the 2016 U.S. Presidential elections, Twitter, Facebook and Alphabet's (GOOGL - Free Report) Google have faced severe flak for spreading fake news that allegedly influenced election results.
Facebook now has been charged of letting U.K.-based political consulting firm, Cambridge Analytica, appointed for Trump’s presidential campaign, access data of 50 million users without their permission.
The recent incident has grabbed the attention of government regulators globally. Rising demand for privacy protection has put pressure on regulators to scrutinize data collection, storage and access policies of these platform providers.
Moreover, notable corporate personalities like Apple CEO Tim Cook have urged for immediate regulations to govern social media platforms and address data privacy concerns. We believe that proper regulations will boost trustworthiness over the long haul.
Twitter Still the Ace Performer
Twitter shares have returned 86.6% in the past year, significantly outperforming the 30.7% rally of the industry it belongs to. In comparison, Facebook has gained 6.7%, while Snapchat parent Snap (SNAP - Free Report) has lost 28.1%.
The outperformance can be attributed to Twitter’s initiatives to improve brand image and create a “safer environment.” The company has made advertisements more transparent by providing users more detailed information about political issues.
Apart from curbing content that promotes violence, hatred and harassment on the platform, the company recently banned cryptocurrency ads, joining the ranks of Facebook and Google.
The revised ad policy will definitely help in preventing large investor losses and boosting user as well as advertiser confidence in the long term.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Twitter Sinks as Citron Short Positions Flaring Up Distrust
Twitter shares fell 12% to close at $28.07 on Mar 27, after Citron Research announced that it’s taking a short position on the stock.
Per Bloomberg, Citron believes that increasing contribution from data licensing business makes Twitter vulnerable to any “potential privacy regulation” following social media giant Facebook’s data leak debacle.
In the last reported quarter, data licensing & other revenues grew 10% on a year-over-year basis and accounted for almost 12% of Twitter’s total revenues.
Although Twitter has stated that its data business doesn’t sell direct messages (DMs), contrary to Citron’s report, the share price plunge reflected investor scepticism, which was primarily fuelled by lack of trust.
Twitter shares were down 1.7% in pre-market trading.
Loss of Trust Hurts Social Media Stocks
Since the 2016 U.S. Presidential elections, Twitter, Facebook and Alphabet's (GOOGL - Free Report) Google have faced severe flak for spreading fake news that allegedly influenced election results.
Facebook now has been charged of letting U.K.-based political consulting firm, Cambridge Analytica, appointed for Trump’s presidential campaign, access data of 50 million users without their permission.
The recent incident has grabbed the attention of government regulators globally. Rising demand for privacy protection has put pressure on regulators to scrutinize data collection, storage and access policies of these platform providers.
Moreover, notable corporate personalities like Apple CEO Tim Cook have urged for immediate regulations to govern social media platforms and address data privacy concerns. We believe that proper regulations will boost trustworthiness over the long haul.
Twitter Still the Ace Performer
Twitter shares have returned 86.6% in the past year, significantly outperforming the 30.7% rally of the industry it belongs to. In comparison, Facebook has gained 6.7%, while Snapchat parent Snap (SNAP - Free Report) has lost 28.1%.
The outperformance can be attributed to Twitter’s initiatives to improve brand image and create a “safer environment.” The company has made advertisements more transparent by providing users more detailed information about political issues.
Apart from curbing content that promotes violence, hatred and harassment on the platform, the company recently banned cryptocurrency ads, joining the ranks of Facebook and Google.
The revised ad policy will definitely help in preventing large investor losses and boosting user as well as advertiser confidence in the long term.
Twitter has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>