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.