Evercore ISI Downgrades Twitter, Inc. (TWTR) to Sell
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Evercore ISI analyst, Ken Sena, downgraded Twitter, Inc. (NYSE: TWTR) from Hold to Sell with a price target of $17.00 (from $18.00).
A real-time data source such as TWTR strapped to a large data and infrastructure stack could be very exciting, which is underlying some of the stock’s recent move. However, as broadcasting capabilities permeate competing social platforms, there is more risk than reward, particularly ahead of Snapchat’s anticipated monetization ramp this fall.
Where execution is concerned, the company’s 3Q revenue forecast implies just 5% growth at the midpoint, roughly 1/10th FB's recent rate, on roughly 1/10th FB’s revenue scale. Also, when adjusting for Stock comp, TWTR is trading at or above what Microsoft (NASDAQ: MSFT) paid for Linkedin (NASDAQ: LNKD) in June.
Shares of Twitter, Inc. closed at $20.17 yesterday.
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