Boston, MA 06/06/2014 (wallstreetpr) – Global platform for public self-expression and conversation or social network site, Twitter Inc (NYSE:TWTR) announced that it will buy mobile advertising start up company, Namo media for undisclosed terms. The target company is engaged in focusing itself native advertising for mobile gadgets.
Acquisition of Namo Media
Twitter’s vice president of product Kevin Weil said in a blog that there is a common vision between the two companies on improving native advertising through mobile apps for the monetization benefit of marketers and app publishers, besides users. Namo Media is backed by Venture capital firms that included Betaworks, Andressen Horowitz, and Google Ventures.
Though there was no announcement of the terms of the deal, Namo Media disclosed in a blog that its technology would be launched into MoPub, an ad serving platform, which the social networking company acquired last year for over $300 million. The combined platform is expected to improve the social media’s capability to deliver native ads, i.e. promotional material, which unifies mobile apps and websites.
Stock Rating
Meanwhile, investment advisor Pacific Crest has initiated Twitter shares with an “Outperform” rating and kept a price target of $45.00. The company’s shares rebounded strongly with an 11.5% upside after bottoming out at $29.51 on May 7 to approximately $32.90 as at the close of June 4, which is an over 48% discount to its year-to-date flat line.
However, majority of the analysts, who are covering Twitter Inc (NYSE:TWTR), has either maintained ‘Hold’ rating or ‘Strong Sell’ rating. The average price tag of 12-month period stands at $43.73 thus suggesting further room for appreciation from the current levels. The current price is approximately 32% discount to the closing price of June 4 compared to the average price of the 24 analysts.
Strangely, Twitter Inc (NYSE:TWTR)’s vice president Alexander Roetter has sold about 12,400 shares on June 2 at an average cost of $31.76. The company’s another VP Luca Baratta also preferred to offload 1,875 shares on June 3 at an average cost of $32.50.
