3 Stocks to Watch on Monday: Twitter Inc (TWTR), Walt Disney Co (DIS) and Pain Therapeutics, Inc. (PTIE)

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Updates with possible Walt Disney Co (NYSE:DIS) bid for Twitter Inc (NYSE:TWTR).

Last week’s Federal Reserve-spurred rally tapered off at the end of last week as Friday finished with a thud. The Dow Jones Industrial Average finished down 0.71%, the S&P 500 was off 0.57% and the Nasdaq Composite finished 0.63% lower.

3 Stocks to Watch on Monday: Twitter Inc (TWTR), Walt Disney Co (DIS) and Pain Therapeutics, Inc. (PTIE)Things don’t look much better Monday morning. S&P 500 futures are off fractionally, and Twitter Inc (NYSE:TWTR), Walt Disney Co (NYSE:DIS) and Pain Therapeutics, Inc. (NASDAQ:PTIE) all look ready to guide the market lower.

Here’s what’s doling out the pain:

Twitter Inc (TWTR)

UPDATE: Bloomberg News reported this afternoon that Disney is working with a financial adviser to discuss a possible buyout bid for Twitter.

TWTR shares were off prior to that amid a downgrade from Oppenheimer centering around Twitter’s potential buyout.

Last Friday, Twitter shares rocketed more than 20% higher amid reports that the social media company was in talks with several companies about a deal. Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) and Salesforce.com, Inc. (NYSE:CRM) were among the companies at the top of Wall Street’s speculation list.

However, Oppenheimer thinks that’s all the squeeze Twitter will get out of this orange.

In a research note, analyst Jason Helfstein downgraded TWTR stock to “Underperform” and gave it a price target of $17. “A media company is the most likely acquirer of Twitter and would not pay meaningfully more than the valuation implied by our price target,” he said.

Helfstein will hope to avoid the same fate as RBC Capital’s Mark Mahaney, who downgraded Twitter right before its monstrous move.

TWTR was down 2% in early trade, but flipped up to 1% gains on the Disney buyout talk.

Walt Disney Co (DIS)

A downgrade also was responsible for a slide in DIS shares this morning.

Drexel Hamilton just dropped Disney stock from “Buy” to “Hold,” and also reduced its price target. Drexel now has a PT of $102 on Disney instead of $112, though that still implies about 9% of upside from current prices.

The note cites worries about, surprise surprise, media competition. Specifically, Drexel worries about cord-cutting, and says, “We believe the threats to the traditional ecosystem will increase as [multichannel video programming distributors] start to integrate [over-the-top content] offerings into set tops and as they shift focus to their data business.” There’s also concerns about losses from Disney’s Shanghai park, which opened in June.

Disney is in a bad way right now, off about 12% since a peak in May and well under its major moving averages.

DIS stock is off 1% in Monday morning trading.

Pain Therapeutics, Inc. (PTIE)

PTIE is collapsing this morning amid dour news concerning its opioid, Remoxy ER.

The Food and Drug Administration responded to Pain Therapeutics’ new drug application to say that it can’t approve Remoxy ER “in its present form.” The FDA’s issues have to do with the “abuse-deterrent properties of Remoxy ER and proposed drug labelling.”

Shares were halted earlier this morning, and Pain Therapeutics has scheduled a conference call for 9 a.m. to discuss the FDA’s response. PTIE has recorded no revenues for the past couple of years, and the news puts a pause on any hopes that will change in the near future.

PTIE was off 65% early Monday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/3-stocks-watch-monday-twitter-inc-twtr-walt-disney-co-dis-pain-therapeutics-inc-ptie/.

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