Chowdhry Calls Twitter (TWTR) 'Total Junk'; Says Stock Can Sink to $5/Share

Global Equities Research analyst Trip Chowdhry is out calling Twitter (NYSE: TWTR) "total junk" following today's executive departures and is telling investors to avoid the stock as it could head even lower to $5/share.

Chowdhry said Twiter is in the same league at GPRO, FIT, GRPN, ZYGA, ETSY, SQ, PSTG, BOX...etc...

"TWTR firing a certain set of executives and bringing another set of executives is not going to change anything...We have seen this movie being played out in the Industry numerous times, and it is not going to be any different this time either...a Junk remains a Junk," he commented.

Chowdhry highlighted the following:

• Remember ...Anthony Noto hire as the new CFO, ...he is the corporate wiz from Goldman Sachs, TWTR worst is behind...
• Remember ...Jack Dorsey hire ...product wiz is back..TWTR worst is behind...
• Remember ... Price Alwaleed investment in TWTR ...he is no dope ...follow Alwaleed...
• The same movie has been played at Yahoo (Remember Marisa Mayers ....), Zynga, Groupon and many more ...these all companies have become a revolving door for the executives as Junk remains a Junk

The analyst said when all is said and done, Twitter is a $5 stock with fair value about 1x revenues.

Chowdhry does think the company can still show user growth especially from India and other Asian countries. He said TWTR is a good propaganda service for the governments, but is also a good mechanism for Governments to crack down on its citizens ...and this dynamic will prevent engagement and monetization on TWTR... He said if the company does sees user growth investors should use that as a opportunity to sell the stock.

"The novelty effect of TWTR is fading, and it will be extremely difficult for TWTR to regain its novelty," he said.

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