- Twitter (NYSE:TWTR) is off 14.8% today after missing on revenues yesterday and posting guidance for Q2 sales that was well below consensus. A wave of analyst caution (and widely varying price targets) has rolled in today.
- Jefferies cut estimates and trimmed its price target to $32 from $35, implying there's still 111% upside in the stock. "Focus remains on refining the core service and leveraging TWTR's video platform in '16," write analysts Brian Pitz and Brian Fitzgerald and team.
- For Q2, Jefferies has trimmed its revenue estimate to $606M form $678M (along with the company's guidance for $590M-$610M), and its estimate on GAAP EPS to -$0.17 from -$0.16. For the fiscal year, Jefferies sees revenues of $2.772B, down from a previous $3.017B, but EPS of -$0.56 compared to a previous -$0.61.
- Meanwhile, J.P. Morgan's Doug Anmuth cut the stock to Neutral from Buy ($18 price target, down from $26), and BAML's Justin Post cut to Underperform. "Product changes have been slower and less impactful than we expected," Anmuth says; the company's usage could benefit from upcoming events including Olympics and elections, but "we believe execution will be critical & competition is narrowing the opportunity for growth in both users & ad dollars.”
- Reiterating Buy ratings: SunTrust ($18 target) and Goldman Sachs ($22 target). Barclays reiterated a Hold rating with an $18 target, and Cowen & Co. reiterated a Hold with a $14 price target.
- Brian Pitz ranks No. 78, and Brian Fitzgerald No. 344, out of 3,906 analysts evaluated at TipRanks.
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