Twitter (TWTR) could use a product shake-up, and Elon Musk may be just the man to do it, says one top Wall Street analyst.
"Anyone on Twitter understands the product is like beaming your dad's Oldsmobile way back when. It's not Tesla like," Jefferies analyst Brent Thill said on Yahoo Finance Live.
Enter the CEO of Tesla.
It was disclosed on Monday that the somewhat unpredictable Musk took a 9.2% stake in Twitter. The stake — valued at close to $3 billion as of Twitter's closing price on Friday — is defined as a passive one.
Shares of Twitter surged 27% in the session. The stock popped another 7% Tuesday as Twitter disclosed Musk will be joining the company's board.
Thill thinks the addition of Musk is great, as his impressive track record of product design could go a long way to improving Twitter and driving better ad sales.
"If I am interested in a particular topic or sports or travel, today there is a lot of noise on Twitter. I am OK with some of the noise. I think some users like that, but there are some users who really want to refine the experience. I don't think that anyone has been able to get that kind of experience," Thill explained.
The analyst reiterated a Hold rating on Twitter's stock. He reiterated Buy ratings on Alphabet, Meta and Snap.
Twitter has to get its product right — analysts like Thill argue — if it will hit some lofty financial goals it projected in 2021.
The company has said it's targeting $7.5 billion in sales by fiscal year 2023. The company posted more than $5 billion in sales in 2021.
Adds Thill, "They need to shake things up. Twitter has really been caught in a rut, and they haven't been innovating at the pace they could."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit
