UBS Reduced Target Price On Twitter Stock

UBS Reduced Target Price On Twitter Stock

The stock price target was reduced from $48 to $40 at UBS, as it showed sluggish growth.

Twitter, Inc. has reported surprisingly healthy results for the third quarter fiscal year 2015. Once the micro-blogging company announced its result, in the after-market trading session, the stock fell by 13%. Additionally the company reported weaker-than-expected revenue, as it generated $569 million which represented a growth of 39% in comparison to the same quarter of Fiscal Year 2014.

The stock analysts at UBC, a financial services firm, have reiterated a rating of Buy on Twitter’s stock and have also provided a downward revision of the price target from $48 to $40. The financial and research services company has also stated that they are fairly careful with the stock of the mice-blogging company but certainly believe that it will show good growth and sustainability from the revenue that it will generate from the ads.

The adjusted earnings per share (EPS) of Twitter’s stock were at $0.10 which outperformed the estimated earnings of $0.05. Even though, the results shared by the company were fairly good, the shares of the social media network fell immediately after the earnings call. This dip was merely due to the dreary user growth. In the recent quarter, the social media website was able to add up to 3 million MAU – monthly active users, generating a total MAU of 307 million. These numbers do not include the SMS fast followers, which would increase the monthly user count.

The analysts at one the premier investment banks Cantor Fitzgerald also commented on the stock of the social media website suggesting a rating of Buy. The analysts also lowered the target price as well, to $45. Over 44 analysts cover the stock of the micro-blogging media company. Out of these 44 experts, a Buy rating was recommended by 17 of them and a Hold rating was suggested by 24 of them. They also suggested a 52-week consensus target price which was $34.22. From the Dow Jones Index, the stock fell by over 16% and currently is being traded at $30.25 which is a decrease of 3.39%.

In other news, Jack Dorsey was made the permanent chief executive officer of Twitter as the board of directors believed that he was the man to turn around the luck of the company. According to an analyst Mark May, the major product Project Lightning since Dorsey has been “a bit of a disappointment” and further added that the social media company’s ‘fire hose approach’ isn’t working quite well for them while Facebook’s “lean back approach” has worked quite well for the social media giant. He explained that it was be a good sight to see the social media website glom onto that model.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s