Skip to main content

Twitter NYSE Honeymoon Is Over As Stock Price Takes Another Nosedive

Today at market opening, Twitter shares ( NYSE:TWTR) dropped once again.
Shares were at $60.27, down 5.46 percent compared to Friday's closing price of $63.75. This nosedive marks the end of the honeymoon between Twitter and the NYSE as many analysts stated that shares are overpriced. Until now, the stock held strong amid those reports, but that seems to be coming to an end.
It is not the first drop as shares were already down 13 percent on Friday, shaving $5 billion off Twitter's market capitalization. It was a big
correction of Thursday's good performance —
on Thursday, shares popped 5 percent for no
apparent reason.
Many analysts find that Twitter is an expensive
company. With a market cap of $33.6 billion,
the company has yet to turn a profit — analysts
don't expect to see any profit before 2015. But
this pessimistic trend on the analyst's side seems
to be increasing. On Friday, Macquarie analyst
Ben Schachter downgraded Twitter.
According to Bespoke Investment Group, the
average price target stands at $44.27, around 37
percent below today's trading price.
But why is the stock price dropping today? The
Twitter IPO was a great sign for the entire tech
industry. Private companies saw that the stock
market could be friendly again with tech
companies — and now, everyone wants to IPO.
When Twitter became a public company on
November 7, the company priced its IPO at $26
a share. Shares popped 74 percent on that day.
After this very good IPO performance, the
stock price has been relatively flat.
Many commented that the IPO was underpriced
on purpose to make a big splash on the NYSE.
Leaving money on the table was a way to
improve the longterm prospects and overall
image. Shares are still up around 135 percent
compared to the IPO price.
Yet, there was a recent turning point for Twitter
shares. When the company introduced
retargeted ads in early December, the
advertising industry was very enthusiastic. Ads
would soon be more relevant thanks to browser
cookies and more user information. And
shareholders voted with their wallets.
Shares went from $44.95 on December 6 to
$73.31 on December 26. It represents a 63.1
percent increase, or a $15.7 billion increase in
market capitalization. But it wasn't sustainable
on the long run. This 3-week honeymoon was
great while it lasted, but it's time to come back
to reality.

Comments

Popular posts from this blog

Online wealth.

I've got little to say about myself. I'm interested in wealth in a legal ways. I've spent time searching for how to make money online without failing in the hands of scammers, without selling Ebooks that will involve one taking illegal steps online too, and at it, I came across some. I'm not going to collect a dime and they're things one can do by oneself. You can get in touch with me and I'll show you. I'm from Nigeria, mentioning Nigeria, I know most of you'll have a kind of funny thoughts. We've got some honest as well as dis honest people everywhere. I'm also going to be posting motivational and inspirational stories to encourage people too. Before I go, I'll like to leave you with something. The least they paid is $1. You can get in touch vis the following numbers; cell phone number: +2348032739705, Blackberry pin: 216F1C6E my email is jsiahtoycom@gmail.com

WZoneLite – A Pretty Cool WooCommerce Amazon Affiliate Plugin .

Everyone wants to make a million dollars by being a blogger. The promise of riches and internet fame is a big draw to doing it for a lot of people, and I’m sorry to say that the reality of being a blogger (even a professional blogger!) is not quite…as financially lucrative as all that. But that’s not to say that it  can’t be –one of the best ways to start your empire is with an Amazon affiliate plugin. For me, the Amazon Associates program has been one of the biggest earners for me over the years. Not only are there CPM ads like Google Adsense (you know, the normal banner ads we all love to hate), but any time someone clicks a link from your site, you get a percentage of  anything  they buy while the token from your site lasts in their browser. If they buy a song, you get a few cents. If they buy a new MacBook Pro and iPhone? You get…a lot more cents. With that in mind, WZoneLite is a  pretty cool WooCommerce Amazon affiliate plugin that syncs everything together s...

AWS Battles Rivals: Advertising Campaign

Amazon Web Services has defeated IBM in a competition for lucrative federal contracts, threatened Microsoft's core businesses, and reshaped corporate technology. In the last few months, the pioneering cloud-computing unit of the online retail giant has taken a page from the playbook of some of its more traditional competitors: It started advertising. Ads have been splashed across billboards and in airport terminals, television spots and web videos, featuring a whiteboard full of sketches of software architecture and appeals to invent something using Amazon's collection of rented computing services. The advertising campaign, which bears the "Build On" tagline, represents a milestone in AWS' march from technology upstart to one of the major players in business software, technologists and marketers say. For many years, AWS didn't advertise, partly because it didn't have to. The service held a wide lead over the competition, and word-of-mouth was enough to...