Twitter is ‘toast’ and the stock is not even worth $10
December 21, 2016
Twitter is “toast” as a company and the stock is not even worth $10, according to a research note published Tuesday, following the departure of another top executive at the social media service.
The microblogging platform’s chief technology officer, Adam Messinger, tweeted that he would leave the company and “take some time off”, while Josh McFarland, vice president of product at Twitter, also said he was exiting the company.
Twitter has also lost leaders from business development, media and commerce, media partnerships, human resources, and engineering this year.
The departures prompted Trip Chowdhry, the managing director of equity research at Global Equities Research, and a noted “uber-bear” on tech stocks, to issue a note on Tuesday claiming Twitter is “toast” and “not even a $10 stock”.
Twitter’s share price closed at $17.92 on Tuesday. A $10 price tag would represent a more than 44 percent decline in the U.S. technology company’s shares on Tuesday’s closing price.
The analyst said that Twitter’s data quality is “horrible”. Chowdhry said that many pollsters used Twitter data to predict a Hillary Clinton win in the U.S. election but the fact that Donald Trump won shows that data quality is poor. One reason for this is too many fake users on the platform, Chowdhry claims.
“If data quality is bad, ad targeting is bad, and if ad targeting is bad, advertisers are not happy, and hence monetization will remain challenging for Twitter,” Chowdhry said. (Read More)
Read the full article at CNBC