Twitter (TWTR) shares are down about 2.5% after getting slapped with yet another downgrade.
Cantor Fitzgerald analyst Youssef Squali downgraded TWTR from ‘hold’ to ‘sell,’ giving Twitter stock its third downgrade in the last two weeks. Mr. Squali said that the microblogging site usually gives ‘sell’ rating to business models with structural challenges. He added that Cantor Fitzgerald find “Twitter’s valuation to be excessive and currently see materially more downside than upside.”
Morgan Stanley (MS) downgraded TWTR to ‘underperform’ over concerns regarding the crowded online advertising market. Twitter was also slapped with an ‘underperform’ downgrade from Macquarie on Dec. 27, also nothing that valuation is excessive.
20 of the 26 analysts covering Twitter have “hold” or “sell” ratings on the stock.