Soon after the market closes today, millions of consumers and investors will finally learn if Twitter (TWTR) is as popular an app and as valuable a company as its stock price suggests.
The company releases its first earnings report since becoming a public company early November. The stock has gained close to 150% since then and is trading near $66 a share at midday.
Scott Kessler, analyst at S&P Capital IQ, tells The Daily Ticker: "People are focused more on opportunity and not on risk" when it comes to Twitter.
He has a "sell" rating on the stock with a $43 price target -- about a third below its current price.
"We have concerns about margins and profitability," says Kessler. He expects Twitter will report a per-share loss for the quarter due to "significant cost and operating expenses" but he did not say specify a number.
Related: Facebook turns 10: "The most important tech company of the past decade”
So why is Twitter's tock price so high?
Kessler says two factors are contributing to the surge in Twitter's stock: retail and institutional investors are "chasing performance" and there's only a small amount of outstanding shares available for purchase.
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