Twitter is tanking as the downgrades come in
The stock fell 7% Friday after investors grow wary of its high valuation. Now, 19 of 26 analysts give it a 'hold' or 'sell' rating.
Twitter's (TWTR) high-flying stock has gone too far, too fast.
That view comes courtesy of Macquarie Equities Research, which cut its rating on the microblogging site Friday morning to "underperform" from "neutral," while maintaining its $46 price target.
The catalyst for the firm's downgrade is simple: Twitter hasn't done anything to justify nearly tripling since last month's IPO.
"We believe nothing has changed the fundamentals to justify the sharp rise in shares over the past few weeks," Macquarie analyst Ben Schachter wrote to clients, while adding that the one-page research note may be "among the shortest downgrade notes you've ever read."
Shares dropped more than 7 percent Friday. The stock had risen five days in a row, gaining 76 percent this month and 182 percent since its IPO in early November.
Schachter notes the firm launched its coverage of Twitter on Dec. 11, when the stock was priced at $46. Since then, the stock jumped about 40 percent, compared to a 2 percent rally for the S&P 500, "on the back of virtually no news," he said.
"We continue to believe that Twitter as a company has a bright future and many opportunities ahead," Schachter says. "However, as a stock, we believe nothing has changed over the last 15 days to justify the rise in valuation."
Schachter also thinks he'll be the first of several analysts who'll act on Twitter's latest rally. Nineteen of the 26 Wall Street analysts that cover Twitter have the equivalent of "hold" or "sell" ratings on it, according to Thomson Reuters.
"Because of Twitter's run and rules around price targets, we expect many other analysts will quickly have to either justify raising targets (based on little new information) or downgrade," he says.
--Alexandra Scaggs contributed to this report.
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No legitimate platform!
A time waster.
Its only virtue is for news and alerts but many other platforms provide tailored data to voice, email and text.
At least FB provides a portal for furthering public relations/discovery and staying connected.
But even FB can become a menace... "in moderation" is the prescription.
Na - Na- Na - Na ---- Told you so !
Who buys stocks of companies that don't make money anyway?????
THAT KIND OF STINKS PATRIOT.....???
Believe that was the IPO price of TWTR @ $26....It was "way over" subscribed..
Think it opened @ $38 and change and has never seen $24 dollars since...
Unless you had some "very good" connections you never got it for $26...
I think you are a Liar, plain and simple...
I had a chance to buy, didn't and probably would not have got the IPO anyway..
No NTU...There were NO MARKET MAKERS selling for $24 bucks or near that.
Go buy an island, make the rules and laws, develop your new country's currency and start your own printing presses. You can hail to yourself in front of a mirror every morning as the new President/King/Queen/Dictator/God or whatever you want to call yourself as the ruler of your nation. Congratulations!
Go do it now and stop whining!
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These hot movers could rise by double digits in coming months.
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