The Twitter share fell sharply Friday, December 27 , investors taking profits after an unexplained flight title in recent weeks and renewed doubts about the real value of social network.
In a market where volumes were generally low due to the holiday season , the stock closed at $ 63.75 , down 13.04 % compared to the previous day. Analysts said the sell-off was triggered by a drop recommendation Macquarie Bank , which said in a note that the current level of security was now far too high compared to its own target price ( $ 46 ) and that " nothing had changed in the last 15 days to justify the increase in valuation ."
Nothing rational
Gregori Volokhine , president of Meeschaert Financial Services, also points out that the share was "amazing" progress recently, taking 75 % since the beginning of the month for no particular reason , and that "it is quite normal that people take profits " . For him, the evolution of the current title "is not something rational ." The Twitter share had closed at $ 73.31 Thursday night nearly triple its introductory course set at $ 26 in early November.
Even after the fall on Friday, the group is valued traded at around $ 34.7 billion , he has never made a dollar profit and sales reached only $ 422 million on first nine months of the year. "It is difficult or impossible for analysts to manage the market valuation of Twitter ," notes the analyst 247wallst.com website , noting that it currently reaches 62 times the expected turnover for the group this year.
In a market where volumes were generally low due to the holiday season , the stock closed at $ 63.75 , down 13.04 % compared to the previous day. Analysts said the sell-off was triggered by a drop recommendation Macquarie Bank , which said in a note that the current level of security was now far too high compared to its own target price ( $ 46 ) and that " nothing had changed in the last 15 days to justify the increase in valuation ."Nothing rational
Gregori Volokhine , president of Meeschaert Financial Services, also points out that the share was "amazing" progress recently, taking 75 % since the beginning of the month for no particular reason , and that "it is quite normal that people take profits " . For him, the evolution of the current title "is not something rational ." The Twitter share had closed at $ 73.31 Thursday night nearly triple its introductory course set at $ 26 in early November.
Even after the fall on Friday, the group is valued traded at around $ 34.7 billion , he has never made a dollar profit and sales reached only $ 422 million on first nine months of the year. "It is difficult or impossible for analysts to manage the market valuation of Twitter ," notes the analyst 247wallst.com website , noting that it currently reaches 62 times the expected turnover for the group this year.
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