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

4-Traders Homepage  >  Equities  >  Nasdaq  >  Facebook Inc    FB

Delayed Quote. Delayed  - 08/30 10:00:00 pm
125.84 USD   -0.55%
05:51a FACEBOOK : CEO in Nigeria to Witness Africa's Tech Revolution
04:16a FACEBOOK : founder on surprise Nigeria visit
08/30 FACEBOOK : Founder, Mark Zuckerberg, Arrives Nigeria in First Africa..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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 INC
05:51a FACEBOOK : CEO in Nigeria to Witness Africa's Tech Revolution
04:16a FACEBOOK : founder on surprise Nigeria visit
01:44a FACEBOOK : boss Zuckerberg in Lagos
08/30 FACEBOOK : Founder, Mark Zuckerberg, Arrives Nigeria in First Africa Trip
08/30DJAPPLE : In Apple's Wake, Facebook's Tax Arrangements in Ireland Raise Questions
08/30 FACEBOOK : CEO denies transformation into a media company
08/30 FACEBOOK : Zuckerberg visits Nigeria
08/30 FACEBOOK : CEO goes to Nigeria to witness Africa's tech revolution Zuckerberg is..
08/30 FACEBOOK : tweaks algorithm for ‘trending’ stories
08/30DJCMO TODAY : Facebook's Glitch Exposes Vulnerable Publishers
More news
Sector news : Social Media & Networking
08:05aDJGoogle Takes on Uber With New Ride-Share Service
08/30 U.S. slams EU, but Apple tax demand first issued in Washington
08/30DJIntel Pushes 4K Video With Latest Chip Line
08/30 APPLE : German econmin backs EU decision to make Apple pay Ireland billions in t..
08/30 APPLE : German economy minister backs EU decision to make Apple pay Ireland bill..
More sector news : Social Media & Networking
News from SeekingAlpha
08/30 WALL STREET BREAKFAST : Apple Slammed In EU Tax Crackdown
08/30 Facebook news roundup
08/29 Europe Won't Get Apple's Irish Pot Of Gold
08/29 ALPHA FROM EQUAL-WEIGHTING : Industrials And Conclusions
08/29 TWITTER : An Olympic Flop, But It Doesn't Matter
Advertisement
Financials ($)
Sales 2016 27 173 M
EBIT 2016 15 204 M
Net income 2016 8 364 M
Finance 2016 22 212 M
Yield 2016 -
P/E ratio 2016 44,14
P/E ratio 2017 31,29
EV / Sales 2016 12,5x
EV / Sales 2017 9,09x
Capitalization 361 370 M
More Financials
Chart FACEBOOK INC
Duration : Period :
Facebook Inc Technical Analysis Chart | FB | US30303M1027 | 4-Traders
Full-screen chart
Technical analysis trends FACEBOOK INC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 48
Average target price 154 $
Spread / Average Target 22%
Consensus details
EPS Revisions
More Estimates 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 & VP-Engineering
Timothy Campos Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FACEBOOK INC20.24%361 370
TENCENT HOLDINGS LTD35.27%249 997
LINKEDIN CORP-14.56%25 909
TWITTER INC-20.57%13 008
SINA CORP52.79%5 273
DENA CO LTD54.26%4 311
More Results