Twitter cut to sell at Morgan Stanley; off 4% premarket

|By:, SA News Editor

With the competition for online advertising revenue intensifying, TV ad budgets are more likely to go to YouTube and Facebook first, rather than smaller platforms like Twitter (TWTR), says Morgan Stanley, downgrading the stock to Sell.

The price target of $33, notes the team, would have the stock trading at 14x revenue and 84x 2015 estimated EBITDA.

"Where we could be wrong": Near-term estimates may be conservative, says the team, meaning revisions following late January/early February Q4 results could provide a near-term boost to the stock.

Shares -4.1% premarket