U.S. Markets close in 1 hr 47 mins
  • S&P 500

    4,398.54
    -20.61 (-0.47%)
     
  • Dow 30

    34,936.91
    -147.62 (-0.42%)
     
  • Nasdaq

    14,682.64
    -95.62 (-0.65%)
     
  • Russell 2000

    2,226.64
    -13.39 (-0.60%)
     
  • Crude Oil

    74.13
    +0.51 (+0.69%)
     
  • Gold

    1,817.60
    -18.20 (-0.99%)
     
  • Silver

    25.53
    -0.25 (-0.96%)
     
  • EUR/USD

    1.1864
    -0.0032 (-0.2729%)
     
  • 10-Yr Bond

    1.2310
    -0.0380 (-2.99%)
     
  • Vix

    18.00
    +0.30 (+1.69%)
     
  • GBP/USD

    1.3895
    -0.0063 (-0.4488%)
     
  • USD/JPY

    109.7980
    +0.3370 (+0.3079%)
     
  • BTC-USD

    38,946.21
    -739.88 (-1.86%)
     
  • CMC Crypto 200

    925.46
    -24.45 (-2.57%)
     
  • FTSE 100

    7,032.30
    -46.12 (-0.65%)
     
  • Nikkei 225

    27,283.59
    -498.83 (-1.80%)
     

Why is Twitter (TWTR) Stock Tumbling Today?

On Thursday, shares of real-time social media platform Twitter Inc. TWTR are tumbling, down almost 5.5% in afternoon trading after its stock received a downgrade and price cut from Evercore ISI.

Evercore, a research firm, slashed its rating on TWTR stock to “Sell” from “Hold,” as well as reducing its price target on the company’s shares to $17 from $18.

In a research report, analyst Ken Sena pointed out that Twitter could face serious risks as rival social platforms, especially Snapchat, improve their ability for broadcasting. These competing apps are winning over more and more users and advertisers, which brings “more risk than reward” to the San Francisco-based company and its investors.

Over the past 12 months, TWTR has lost over 30% of its valuation, with its latest quarterly financial results giving investors little to celebrate. Looking ahead, guidance for the company’s fiscal 2016 third quarter suggests only 5% in growth, and in comparison to Facebook FB, that projection is incredibly meek.

TWITTER INC Price, Consensus and EPS Surprise

TWITTER INC Price, Consensus and EPS Surprise | TWITTER INC Quote

Twitter is still struggling with user growth and continued engagement, but its new product launches and sports partnerships with the NFL and the MLB, among other organizations, are steps in the right direction.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FACEBOOK INC-A (FB): Free Stock Analysis Report
 
TWITTER INC (TWTR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research