Anything Left that can Save Twitter Stock?
MKM Partners lowered to $14 from $18 their price target on Twitter, Inc. (TWTR) stock, while reiterating a ‘Neutral’ rating. In a research note issued to investors on Monday, the firm said the social media site’s price cut was based on the thinking that only significant product improvements could re-ignite the company’s growth, which was virtually stalled domestically and has slowed to a crawl internationally. Further, MKM notes that while they “still see mass market potential in the Twitter service”, the company’s inability to increase user engagement and drive future user growth in the near term, as well as the risk of a network collapse remain the “largest concerns” for the struggling San Francisco-based company.
“[S]ignificant execution risk looms large,” MKM stated.
Shares of Twitter gained 0.70% in recent trade. Its shares are down more than 19% in the last 4 weeks and 11.21% in the past three months. Over the past 5 trading sessions the stock has lost 2.08%. Shares of Twitter are down 62.23% year-over-year and 39.07% year-to-date.
With its stock at $14.19, Twitter’s market capitalization stands at just under $10 billion.