Boston, MA 04/30/2014 (wallstreetpr) – Twitter Inc (NYSE:TWTR)’s declining growth has lured analysts to drop the stock’s target price.
As many as 16 analysts have cut down their target price on Twitter’s stock as it raises concern and doubt of matching user number with rival social networking website Facebook Inc (NASDAQ:FB), which has as many as 1.2 billion users.
Contenders v/s Supporters
Shares of the company have decreased by almost a third of their price since the start of 2014. Twitter Inc (NYSE:TWTR) opened at $37.8 today, down 11%, a decline enough to bring it in the list of highest percentage losers in trading on the New York Stock Exchange. With its pace, Twitter has split Wall Street into two categories, one of which consists of supporters who believe the stock to rise Facebook’s growth and the other category belongs to those who are of the opinion that it is only an overvalued stock whose success will continue to fade away.
Twitter Inc (NYSE:TWTR) further boosted the concerns of investors, who are already at the edge of their patience with the stock pushing into declining user growth every quarter, by announcing that the social media’s 255 million monthly users check the service lesser often as compared to their usage in the last year.
“Sell” Ratings
Almost 12 analysts had initiated coverage on the stock with an equivalent rating of “buy” as the company debuted in a high profile in the market in November. However, since then five have lowered their rating on Twitter Inc (NYSE:TWTR). As many as ten brokerages rate the stock as “sell” now. Among the brokerages, are also UBS and Bofa Merrill Lynch. As of today, no downgrades were noticed, but analysts have lowered their price target on the stock to $35, which marks a cut of almost $18. Following the trend, Sheridan has also been noticed to cut the target from $42 to $35.
