Twitter stock slumps 50% as Goldman, Deutsche Bank still say "buy"
Published on May 2, 2014 2:12 PM
(Reuters) - Twitter investors who heeded the advice of high-profile banks such as Goldman Sachs Group and Deutsche Bank to buy the social media company's shares might be kicking themselves.
Much more accurate calls were made by Wells Fargo, Atlantic Equities and Macquarie Research, whose analysts advised clients to get out of the high-flying stock about the time it peaked in December.
On Wednesday the stock fell as low as US$37.24, 50 per cent below its peak of US$74.73 the day after Christmas, wiping almost US$18 billion off Twitter's market capitalization.
The downgrades, and the subsequent swoon by the stock, reflect concern about slowing growth in Twitter's user base and the company's ability to reverse the trend.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!