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
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector 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
A sign displays the Twitter logo on the front of the New York Stock Exchange ahead of the company's IPO in New York

(Reuters) - 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
12:10aFACEBOOK : enlists Qualcomm for its gigabit Wi-Fi project
AQ
05/21Tech Up as Trade Fears Subside -- Tech Roundup
DJ
05/21Socially responsible funds dump or rethink Facebook over data privacy
RE
05/21FACEBOOK : to live-stream EU Parliament hearing
AQ
05/21FACEBOOK : Zuckerberg agrees to webcast of EU parliament hearing
AQ
05/21FACEBOOK 24 HOUR DEADLINE ALERT : Approximately 24 Hours Remain; ClaimsFiler Rem..
BU
05/20The Mystery of the $70 Hoodie That's All Over Facebook
DJ
05/20FACEBOOK : Zuckerberg, EU Lawyers Locked in Negotiations
AQ
05/19FACEBOOK : unfairly being fingered
AQ
05/19FACEBOOK 72 HOUR DEADLINE ALERT : Approximately 72 Hours Remain; Former Louisian..
BU
More news
News from SeekingAlpha
05/21AMAZON'S ADVERTISING BUSINESS : An Emerging Giant 
05/21A Quantitative System To Invest In Quality Stocks 
05/21CONSUMER ROUNDUP : Department Stores Diverge, Gamestop's Flash In The Pan, Disru.. 
05/21SNAP : Where's The Bottom? 
05/21FACEBOOK : Valuation Update After Quarterly Results With DCF Model 
Financials ($)
Sales 2018 56 614 M
EBIT 2018 26 036 M
Net income 2018 22 485 M
Finance 2018 46 909 M
Yield 2018 -
P/E ratio 2018 24,20
P/E ratio 2019 20,21
EV / Sales 2018 8,51x
EV / Sales 2019 6,43x
Capitalization 529 B
Chart FACEBOOK
Duration : Period :
Facebook Technical Analysis Chart | FB | US30303M1027 | 4-Traders
Technical analysis trends FACEBOOK
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 43
Average target price 218 $
Spread / Average Target 18%
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$)
FACEBOOK3.52%531 917
TWITTER INC35.90%24 522
MATCH GROUP INC30.15%11 155
LINE CORP-14.78%8 573
SINA CORP-10.38%6 462
DENA CO LTD-7.46%2 939