- Twitter's (NYSE:TWTR) battle with Pres. Trump may be good for the stock, Bill Alpert writes in this weekend's Barron's cover story.
- The company again finds itself at the center of political and cultural debate, and Alpert says it is benefiting through increased user growth: Twitter's mobile app was downloaded a record 677K times last Wednesday, and Twitter also set a record for active daily users with 40M in the U.S.
- Twitter's ad revenue was hit harder by COVID-19 than its peers, because many of its ad campaigns are driven by sports events, concerts and product launches, which makes the stock a play on economic reopening, according to Alpert.
- Wall Street tends to value internet companies on a multiple of sales, and Aplert says Twitter trades at 6.5x forward revenue vs. 8.5x for social media peers, a ~30% discount.