- Though off its intraday high of $50.09 (achieved shortly after shares began trading), Twitter (TWTR +78.9%) remains above its opening level of $45.10. 89M shares have been traded so far, after 70M were sold in the company's $1.82B IPO.
- Twitter is staying strong even as Internet peers (many of which soared earlier this year) sell off, and Pivotal Research's Brian Wieser issues a two-notch downgrade to Sell, citing valuation; the firm has slightly lifted its PT to $30 from $29.
- Wieser: "One way to justify a $45 price in our model would involve presuming that Twitter could generate more than [$6 billion] in annual revenue by 2018 ... "However, we think that would seem overly optimistic to us given our best assessment of the industry and the business at this point in time."
- Six other firms still have bullish ratings on Twitter, but only two - Topeka and SunTrust - have PTs above Twitter's current trading price. With shares trading at over 45x 2013E sales after factoring options/RSUs, critiques of its valuation are easy to find today.
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Twitter holds onto gains in spite of downgrade, valuation critiques
Nov 7 2013, 13:49 ET