Twitter Sellers Trending – Shares Downgraded to Under Perform, Buyout Talks In The Air
After soaring more than 20% in the year to date, shares of Twitter Inc. seem to be suffering from a perception of being overvalued compared to other social media platforms. Twitter stocks traded around $22 on Friday amidst rumors of a buyout, which have kept re-surfacing for months.
But according to market analysts, given weaknesses in the company, such as slowing user growth and engagement, and weak advertising technology, the price target for Twitter’s shares is being projected around $17. Twitter shares have consequently sunk more than 3% on Monday.
Snapchat and Pinterest are emerging as strong competitors, and have already outpaced Twitter in terms of engagement and advertising investment. Data indicates that the average time users spent on Snapchat in August is almost twice as much as that on Twitter.
Sell Stop at 21.95, Take profit at 21.65, Stop loss at 22.20