Analyst Jonathan Kees with Summit Insights Group said in a note to clients this week that while Twitter is often criticized for its laissez-faire response to trolls, the company has been cracking down behind the scenes for a while now. 

"Twitter's A.I. has improved dramatically to include detecting questionable sign-ups," he said, adding that their "continued cleanup of fake accounts provides for a better environment for real users and boosts advertisers' comfort level with the platform."

Kees said he's reminded of another high-flying social media company that recently faced a public excoriation that wiped millions from the company's value. Earlier this year, Facebook was raked over the coals for its handling of user privacy, a public spectacle that went as far as having founder and CEO Mark Zuckerberg having to testify to Congress about how he planned to clean up the company's act.

Since then? "The stock has made its 52-week high," Kees said. "Despite Facebook's scandals, public lashing, ongoing investigations and investor questions about user growth, the stock has since rebounded."

He expects the same thing to happen with Twitter, and thinks the stock, currently changing hands at around $44 a share, will be worth about $52 a year from now.

Share This Post