Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Facebook    FB

FACEBOOK (FB)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Facebook Inc : Investors dump Twitter stock as results divide Wall Street

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/06/2014 | 04:17pm CEST

Twitter Inc's shares fell almost 25 percent on Thursday, wiping out about $9.8 billion in market value, after the company reported a sharp slowdown in user growth.

The stock, which debuted at $26 in November, hit a low of $50 in early trading. The shares hit a peak of $74.73 in late December as investors bet that the social media platform could become as ubiquitous as Facebook.

Analysts, unlike investors, were divided on the company's outlook a day after it reported fourth-quarter results.

Twitter, according to broker assessments, is either the overvalued owner of a niche product whose potential is fading or an undervalued phenomenon that is set to give Facebook a run for its money in mobile.

"We remain firmly in the latter camp..." said Deutsche Bank, one of one at least six brokerages that raised target prices or ratings on Twitter's stock.

Deutsche, in a note entitled "Great Quarter, Aside From The Most Important Metric", said it was impressed by Twitter's improving monetization and expected slowing user growth to reverse during 2014.

The broker, which sees Twitter on its way to 1 billion user, maintained a "buy" rating on the stock and raised its price target to $65 from $50.

Facebook has about 1.2 billion users.

UBS, on the other side of the argument, issued a "sell" recommendation on the stock and cut its price target to $42 from $45. It was one of at least eight brokerages to cut their target prices or recommendations on Twitter's shares.

"A lack of mainstream adoption or a more simplified use case was a worry of ours coming out of the IPO and seems to have come to the fore faster than we had anticipated," UBS analyst Eric Sheridan said in a note.

Twitter reported better-than-expected fourth-quarter revenue of $243 million in its first results since the IPO.

Investors, however, zeroed in on the anemic user growth, as well as a sharp decline in a measure of user engagement.

Twitter averaged 241 million monthly users in the December quarter, up just 3.8 percent from the previous three months. That was the lowest rate of quarter-on-quarter growth since the company began disclosing user figures.

But the company also said it made $1.49 per 1,000 timeline views, a 76 percent jump from the same quarter of 2012.

"We believe the accelerating user growth and engagement, supplemented by improvements in monetization, will drive continued financial outperformance in the year ahead," Goldman Sachs analysts said in a note.

Goldman raised its target price to $69 from $65 and maintained its "buy" rating on the stock.

Twitter CEO Dick Costolo expressed confidence that Twitter's user growth would improve in 2014 once users get used to a change in layout to help new users and take to a new onboarding process for newcomers to Twitter's mobile app.

"Management offered lots of confidence in reaccelerating those (active user) figures, but that will likely become a 'prove it' story that will make stock outperformance challenging in the meantime," BMO Capital Markets analyst Daniel Salmon said in a note to clients.

Up to Wednesday's close, Twitter shares had risen to about 30 times projected 2014 sales.

(Editing by Ted Kerr)

By Saqib Iqbal Ahmed

Stocks treated in this article : Facebook Inc, Twitter Inc
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FACEBOOK
09:54p Facebook tests adding news stories customised to users' interests
08:38p EXCLUSIVE : SEC officials' holdings, legal work, pose potential conflicts
05:15pDJFACEBOOK : Courts Marketers With In-Stream Video Ads
01:26p SAFARICOM : Kenyans’ love for SMS soars despite vibrant social media use
12:35p FACEBOOK INC (NASDAQ : FB) Internal Forum Shut Down Over Harassment
10:12a GODADDY : Twitter and Cloudflare are latest to take aim at The Daily Stormer, ne..
03:01aDJFACEBOOK : Shut Down Employee Chat Room Over Harassing Messages -- Update
02:40aDJFACEBOOK : Shut Down Employee Chat Room Over Harassing Messages
02:11aDJTech Firms Ban White Supremacists, Shifting From Hands-Off Policy - Update
08/16 THE RUNDOWN : The industry jumps on the blockchain bandwagon
More news
News from SeekingAlpha
03:28p My Chemical Romance
01:37p NETFLIX : The Ugly Duckling Of FANG
12:05p Self-Driving Electric Trucks, Cryptomining, Ecommerce, And Image Recognition
11:59a The Great Online Innovation Pile On Of 2017
10:07a Tracking David Tepper's Appaloosa Management Portfolio - Q2 2017 Update
Financials ($)
Sales 2017 39 170 M
EBIT 2017 18 254 M
Net income 2017 15 987 M
Finance 2017 33 488 M
Yield 2017 -
P/E ratio 2017 32,09
P/E ratio 2018 26,17
EV / Sales 2017 11,7x
EV / Sales 2018 8,76x
Capitalization 493 713 M
Chart FACEBOOK
Duration : Period :
Facebook Technical Analysis Chart | FB | US30303M1027 | 4-Traders
Technical analysis trends FACEBOOK
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 46
Average target price 192 $
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Mark Elliot Zuckerberg Chairman & Chief Executive Officer
Sheryl Kara Sandberg Chief Operating Officer & Director
David M. Wehner Chief Financial Officer
Michael Todd Schroepfer Chief Technology Officer
Atish Banerjea Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
FACEBOOK47.76%493 713
TENCENT HOLDINGS LTD71.55%393 412
TWITTER INC-2.15%11 924
LINE CORP-2.99%7 807
SINA CORP72.46%7 053
MATCH GROUP INC12.63%5 050