“We’ve had three, four, five years of advertisers working with Twitter data and the fact that they’re moving away from Twitter has to tell you something about the value of that data to an advertiser”.
Advertisement
As a result, Mahaney downgrades TWTR from a Sector Perform to an Underperform rating, while cutting the price target from $17 to $14, which represents a almost 25% downside from where the stock is now trading.
Mahaney’s note is a companion piece to a sector note he put out this afternoon featuring the results of a survey of 1,100 adverting professionals, conducted with the help of Advertising Age, “that included a broad mix of marketers, agency representatives, marketing consultants & media companies”. “We note that we still believe Twitter is a unique asset with a strong value proposition to core users”.
It’s not clear whether product changes can stabilize or reaccelerate Twitter usage and its gaining of users, the anaysts said. “Twitter believes it can command premium ad pricing, but its dramatic ad revenue deceleration doesn’t support that”.
Twitter, Inc. (NYSE:TWTR) closed its last session at $18.49 with the change of +0.54%.
“This is the weakest result we have seen and the first time we have seen a negative skew towards spending, 30% of our survey respondents do not allocate any budget to the Twitter platform, up from 25% in February”, Mahaney said, adding that “w$3 hen ranked against its peers, Twitter ranked fifth of seven in terms of [return on investment] ROI to advertisers, behind Google, Facebook, YouTube and LinkedIn, but ahead of Yahoo and AOL”.
Other analysts also recently issued research reports about the stock. According to TipRanks, top five-star analyst Mark Mahaney has achieved a high ranking of #8 out of 4,189 analysts.
Analysts give WPX a mean recommendation of 2.20.
TipRanks analytics indicate TWTR as a Hold. The firm also cut its price target on the stock from $17 to $14, reflecting 24.85% downside potential over the last closing price.
In a research report released yesterday, Argus analyst Jim Kelleher upgraded shares of Amazon.com, Inc. The price targets are usually acts as the boosters or blasters in the performance of stock.
Kelleher wrote, “While the growth engine at Amazon is unmatched, the stock has been hard to time from a valuation perspective”. The average numbers of shares are traded in a security per day, during the recent 3-month period.
Advertisement
“We expect ongoing volatility in the shares, given the company’s sensitivity to the holiday shopping season and need to invest in growth initiatives such as AWS and Prime”. Ltd. now owns 7,618 shares of the social networking company’s stock worth $129,000 after buying an additional 5,115 shares in the last quarter. Majority ranked Hold from the pool of analysts.
