Twitter drills up its business model. As the short message service announced, there will be a paid subscription function in the future. The main aim of this is to open up new business opportunities for a specific user group.
With the new offer, Twitter is targeting American influencers or journalists in particular, who, through such a “Super Follows” subscription, could generate corresponding sales through users who would then also have to pay. For news providers, the most expensive option would cost $ 9.99 per month. Requirements for use are at least 10,000 followers and more than 25 tweets per month.
Even stronger growth spurt?
It is certainly understandable that this offer was first launched in America. It will be interesting for the future when Twitter will also activate this subscription function in other markets. That could turn the current business model upside down and re-fuel current growth expectations. For this year, the market assumes on average that the Internet provider can increase its sales by around 36 percent and triple the operating result based on EBITDA.
Looking towards the old high
The share has regained upward momentum in the past few trading days after the previous weakness. In a first step, this could go in the direction of the current resistance zone at around 42/43 dollars, almost 10 percent potential. Up to the previous high it is a good 20 percent.
Speculatively positioned investors who are betting on a renewed technical recovery can also use a call warrant. We recommend an Open End Turbo Call warrant from UBS with a leverage of 6.8. We estimate the underlying profit potential at almost 70 percent with a price target of 1.40 euros. We set the stop loss at 0.60 euros.