There's more buying of the dip in Twitter (TWTR) as Cantor Fitzgerald makes it two upgrades in two days.
Overvaluation, unrealistic expectations for growth, and the massive lock-up expiration were behind the stock's slump, says the team, but the overvaluation and lock-up have been dealt with. As for expectations, comparisons with Facebook's reach set an unattainable standard. "That said, we think Twitter should show substantial revenue growth/margin expansion and generate meaningful returns to shareholders without having to mirror FB's model [or] approach its size," says Cantor.
Shares +1.3% premarket after yesterday's 10.7% jump.
Previously: Twitter leaps after Nomura upgrade