Twitter Shares Tumble As Bob Peck Downgrades Ahead Of Earnings

Jayson Derrick

Mon, Apr 27, 2015, 7:49 AM

In a report published Monday, SunTrust Robinson Humphrey analyst Bob Peck downgraded Twitter Inc (NYSE: TWTR) to Neutral from Buy with a price target cut to $50 from a previous $58.

Shares of Twitter were trading lower by more than 1.4 percent early in Monday's pre-market session as Peck noted that the sentiment heading into Tuesday's first quarter earnings print is "equally divided."

Looking forward to the quarterly report, Peck highlighted four positive and negative themes that investors have highlighted.

The Positives:

Twitter is likely to report a strong first quarter and is "iterating" fast on new products and innovation.
The opportunity to convert non-logged in users is "large."
The recent search deal agreement with Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) should drive more exposure and usage.
Twitter has "multiple avenues and opportunities" for new monetization.

The Negatives:

Monthly net add guidance for the second quarter may suggest a deceleration in the metric.
Monetization levels are closer to Facebook Inc (NASDAQ: FB) than most realize.
Tweets per day stats are showing a decline and investors may not have other metrics to gauge the business.
Non-Compliant Terms of Service users being monetized may "suppress" advertiser growth in the short and mid-term.

Peck's Final Words:

"While we are big believers in the long-term opportunity in front of Twitter and believe the company will report a strong Q1, we are lowering our rating to Neutral as we think the negative risks create enough concern and likely result in a range-bound stock in the near term," Peck wrote.

Latest Ratings for TWTR

Apr 2015	Axiom	Maintains		Buy
Apr 2015	SunTrust Robinson Humphrey	Downgrades	Buy	Neutral
Apr 2015	Jefferies	Initiates Coverage on		Buy

View More Analyst Ratings for TWTR
View the Latest Analyst Ratings

See more from Benzinga

$433 Billion Gone! One Stock Loses More Value Than Tesla
Tesla's loss of $328.3 billion this year in stock value certainly hurts. But it's only the second-largest market value loss in the S&P 500.
Investor's Business Daily•1d ago
Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000
On paper, Mark Zuckerberg is Meta’s lowest-paid employee, with a $1 dollar salary and no bonus.
Fortune•1d ago
The Vanguard 500 Index Fund Is Great, But Another Vanguard ETF Has Outperformed It the Past Decade
This growth ETF has nicely outperformed the S&P 500 since its inception.
Motley Fool•2h ago
Billionaire Bill Ackman Has His Sights on Only 1 "Magnificent Seven" Stock, and It's Not Nvidia
You'll only find seven different stocks in this billionaire's portfolio, and only one of them is a "big tech" company.
Motley Fool•2h ago
Analysts reset Microsoft stock price targets ahead of highly anticipated earnings
Microsoft, which overtook Apple as the world's most valuable company earlier this year, is looking to cement its AI market leadership.
TheStreet•12h ago
Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next.
Bitcoin block subsidies were recently reduced by half for the fourth time in history, and halving events have always led to significant price appreciation.
Motley Fool•3h ago
China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses
With rising inflation, American consumers are increasingly turning to the Chinese e-commerce platform Temu for their shopping needs. With its enticing tagline “Shop like a billionaire,” Temu has captured 17% of the U.S. market share, posing a challenge to traditional American retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. The rise highlights the lucrative and disruptive nature of startups. Owned and operated by PDD Holdings Inc. (NASDAQ:PDD), Temu offers a wide range of
Benzinga•15h ago
One Member of Congress Is Going Against the Grain and Selling This Skyrocketing Stock-Split Stock
One of Capitol Hill's most-active stock traders is sending a company with well-defined competitive advantages -- that also happens to be on the verge of its first-ever stock split -- to the chopping block.
Motley Fool•3h ago
3 Absurdly Cheap Stocks to Buy and Hold for Years
These stocks all deserve to be trading at far higher prices, and it may not be too long before they start to rally.
Motley Fool•1h ago
History Says the Nasdaq Will Roar Higher This Year. My Top Growth Stock to Buy Before It Does.
This stock is reasonably priced, even after explosive gains.
Motley Fool•1h ago

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

Twitter Shares Tumble As Bob Peck Downgrades Ahead Of Earnings

Recommended Stories

$433 Billion Gone! One Stock Loses More Value Than Tesla

Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000

The Vanguard 500 Index Fund Is Great, But Another Vanguard ETF Has Outperformed It the Past Decade

Billionaire Bill Ackman Has His Sights on Only 1 "Magnificent Seven" Stock, and It's Not Nvidia

Analysts reset Microsoft stock price targets ahead of highly anticipated earnings

Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next.

China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses

One Member of Congress Is Going Against the Grain and Selling This Skyrocketing Stock-Split Stock

3 Absurdly Cheap Stocks to Buy and Hold for Years

History Says the Nasdaq Will Roar Higher This Year. My Top Growth Stock to Buy Before It Does.