Twitter Inc (NYSE:TWTR) stock is taking a beating right now. The company stock is down over 22% right now. Yesterday, Twitter’s stock closed at over $65 and now it is trading at around $51.48. Due to the price drop, Twitter lost around $9.8 billion because of the slowdown in user growth reported in their quarterly financials.
However, analysts were divided on Twitter’s outlook. Some analysts because that Twitter is overvalued and their potential may be fading. Other analysts believe that they are undervalued and could face intense rivalry with Facebook.
Deutsche Bank is one of at least six brokerage firms that raised their target price or rating for Twitter stock. In a report titled, “Great Quarter, Aside From The Most Important Metric,” Deutsche Bank said that they were impressed by Twitter’s monetization growth and they expected the slowdown of user growth to reverse in 2014. They believe Twitter could also hit 1 billion users and they maintained a “buy” rating on Twitter’s stock. Deutsche Bank also raised their price target to $65 from $50.
On the contrary, UBS issued a “sell” recommendation and cut their price target to $42 from $45. They were at least one out of eight brokerages to cut their target prices or recommendations on Twitter’s shares.
Twitter’s stock debuted at $26 this past November and they hit a peak of $74.73 in late December.