After Twitter announced that the company will no longer support free access to the Twitter API beginning February 9 and will instead make a paid basic tier available, Morgan Stanley analyst Elizabeth Porter noted that both Sprout Social (SPT) and Sprinklr (CXM) already have multi-year agreements in place with Twitter whereby they pay for access to Twitter’s data, which minimizes impacts on respective pricing and margin for both companies in the near-term. However, the longer-term implications of Twitter looking to further monetize its platform "remain unknown," the firm added. Semrush (SEMR) has always budgeted expenses related to the Twitter API as it relates to their social media management tools, so "today’s announcement is not impactful," the firm also argued. Morgan Stanley has Equal Weight ratings on Sprout Social, Sprinklr and Semrush.
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