In a research note issued Friday, Cantor Fitzgerald said it was encouraged by the upbeat commentary, April traffic volume and engagement data. It cited several investor conferences hosted by Internet and media companies, and the April US multi-platform traffic data from COMSCORE, Inc. (NASDAQ:SCOR) this week.
The sell-side research firm said that Facebook Inc (NASDAQ:FB) continues to dominate the social media space, and that its monthly unique visitors and time-spent growth continue to pull further ahead of its peers, despite its size.
April US multi-platform traffic data from COMSCORE indicated a vigorous beginning to the second-quarter of calendar year 2015 (2QCY15) in terms of viewer and user expansion for major social media competitors, and the addition of unique visitors to Facebook and Twitter Inc (NYSE:TWTR) came in at three million and 1.6 million, respectively.
Moreover, the data demonstrated persistent engagement gains for a progressively dominant Facebook, which now controls 18.5% of digital time spent. On the other hand, regarding Twitter’s unique visitor and viewer growth, it is noteworthy that comScore data takes logged-out users into account, which makes the comparison between unique visitor traffic data and monthly active users (MAUs) challenging.
Separately this week, Twitter’s CFO stated at an investor conference that he still does not see the benefit from growth initiatives, seasonality, or organic growth from 2QCY15 MAUs. It may keep the stock in short-term check in the firm’s view. That said, product innovation continues at a brisk pace and the tweets are beginning to appear in Google Inc (NASDAQ:GOOGL) mobile search results, pursuant to a recent deal between the two companies.
Cantor believes the deal should help generate meaningful incremental traffic from logged-out users, which could provide monetization opportunities in the short term. However, it remains to be seen whether it will help the company increase the growth of registered users and their retention over time.
The firm reiterated a Buy rating on both Facebook and Twitter stock with price objectives of $92 and $50, respectively.