Twitter Inc (NYSE:TWTR) Continues To Slide

Posted by Lynn Eisler January 10, 2014 0 Comment 1277 views

Stock holders of Twitter Inc (NYSE:TWTR), the real-time messaging platform, which allows its members to tweet messages in short bursts of 140 characters were at the receiving end of another day long battering at the stock markets on January 9. The stock lost close to 3.7 percent of its market value during trading yesterday. With yesterday’s continued investor exit from the stock, its share holders have seen more than 10 percent of their holdings melt in front of their eyes, in the past 5 days of trading. This week’s rout is following a 15 percent dip the stock took during last week’s trading, thus making a dreadful start for its market valuation in 2014.

This continued deluge from the stock of Twitter Inc (NYSE:TWTR) is being fueled by a string of analyst agencies downgrading the stock and reducing their recommended price targets in the past 10 days. The latest downgrade was called out by Cowen and co which in its research paper had recommended a sell rating on the stock. It has also reduced the price target on the stock to $32.

A Slew of Downgrades

The other recent downgrades the firm has been facing in the past 10 days makes for interesting reading. Cantor Fitzgerald has put out a Sell call on the stock from its previous Hold rating and has pegged the stock price at $32 per share. This came on the heels of Morgan Stanley cutting the stock down to an Underweight from its previous rating of Equal Weight with a price target of $33, while Macquarie has downgraded the stock to underperform from its previous neutral call in the last week of December.

These downgrades are being effected as the rating agencies feel that Twitter Inc (NYSE:TWTR) has been struggling to grow its user base fast enough to generate enough profits which justifies its current market valuation.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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