Firm Advises Investors to Sell TWTR Stock
Twitter Inc (TWTR) tanked in early trading. It’s currently down about 3% to $13.97 a share, compared to Monday’s closing price of $14.41. The stock fell after the microblogging site had its rating slashed to ‘Sell’ from ‘Neutral’ at MoffettNathanson.
As reasons for the downgrade, the firm cited several factors including advertiser fatigue and a challenging road ahead.
“While initiatives like the monetization of logged-out users and courting direct response advertisers through ROI and measurement partnerships like the DoubleClick integration could lead to some stabilization and possibly upside in late ’16/ early ’17, they probably do too little, too late,” the firm’s analysts said in a note to investors (via CNBC).
Overall, “the small likelihood of a meaningful payoff doesn’t justify owning the stock here”, they added.
Twitter Inc was also lowered to $18 from $22 at Monness Crespi & Hardt. Firm believes estimates still remain too high.
Earlier today, Twitter announced changes to its format, saying that while the 140-character count rule for tweets will stay, user names, photos, video or GIFs will no longer count towards the length of a tweet.
“A few simple changes to make conversations on Twitter easier! And no more removing characters for images or videos!,” Chief Executive Jack Dorsey said in tweet.
The changes are expected to come into effect in the next few months.
Leave a Reply