Twitter Inc (TWTR) stock continues to drop following Macquarie Capital downgrade

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The stock price of Twitter Inc (NYSE:TWTR) has continued to drop ever since Macquarie Capital downgraded the company. Twitter has been increasing partnerships with advertisers, but the company is not yet profitable. Twitter hit a high of around $63.66 today, but closed at $60.51. This is down from $74.64 on December 26th. Twitter’s stock rallied around 63% between December 6th and December 26th in 20 days.

Macquarie Capital dropped their stance from “neutral” to “underperform.” Twitter dropped around 13% as a result. Macquarie financial analyst Ben Schachter provided the company’s stance during an interview with Bloomberg.

“We continue to believe that Twitter as a company has a bright future and many opportunities ahead,” stated Schachter in an interview with Bloomberg. “However, as a stock, we believe nothing has changed over the last 15 days to justify the rise in valuation.”

Analysts believe that Twitter has a high market capitalization despite the lack of a profit. Twitter is not expected to become profitable until 2015. Twitter’s market cap is currently above $33 billion.

Twitter’s stock price is still well above the IPO price of $26 per share. Twitter’s shares increased 74% on that day.

[Source: TechCrunch]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

Twitter Inc (TWTR) stock continues to drop following Macquarie Capital downgrade Comments

  1. paulmichael says:

    Up nearly 7% today… analysts have got it wrong here by all standards. Twitter is not static but dynamic, people see the future as being rich with tweets, even in Asia with its 3 billion.

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