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Twitter Inc TWTR

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Digital Ad Market Remains Healthy and Vibrant; Alphabet, Facebook, and Pinterest Are Attractive

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

We expect the economic recovery, which Morningstar forecasts to continue through 2025, will drive solid overall advertising growth in the United States. We now foresee a 12.6% increase in ad spending this year and 9.5% growth in 2022. Within this market, we project that digital advertising will grow 22.5% this year and 17.5% in 2022, continuing to take share as it provides more flexibility, does not require up-front commitments, is more quickly and easily measurable, and allows for adjustments in real time. The return of brand advertising and demand for newer digital advertising channels such as connected TVs, podcasts, and retail media will further drive strong growth in digital advertising.

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Company Profile

Business Description

Twitter is an open distribution platform for and a conversational platform around short-form text (a maximum of 280 characters), image, and video content. Its users can create different social networks based on their interests, thereby creating an interest graph. Many prominent celebrities and public figures have Twitter accounts. Twitter generates revenue from advertising (90%) and licensing the user data that it compiles (10%).

Contact
1355 Market Street, Suite 900
San Francisco, CA, 94103
T +1 415 222-9670
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 5,500

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