When we talk about online social networking services, the two biggest names within the space are Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB). You would think that these two companies’ stock price would have some sort of correlation but over the past 3-months, these stocks have eerily traded as if they were inverses of one another.
While Facebook Inc (NASDAQ:FB) shares took a mild hit on September 28th after increasing slightly, the stock continued upward until the middle of November, and has traded pretty level since then. Unfortunately for shareholders of Twitter Inc (NYSE:TWTR) the results have not been so kind. Shares of Twitter were doing fairly well until the end of October, when the stock began its nose dive. This dive lasted until the middle of November, before it too began trading relatively level. However, as of December 10, the stock has again taken quite the hit, reaching levels lower than we have ever seen before.
What is the cause for this? Is Facebook simply showing better financials, leading investors to leave Twitter and head to the more profitable entity?
Facebook Inc (NASDAQ:FB) shares closed at $104.77 during the last trading session. It is up 29.94% since May 19, 2015 and is uptrending. It has outperformed the S&P500 by 32.20%.
From a total of 33 analysts covering Facebook (NASDAQ:FB) stock, 32 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 97% of the ratings are positive. The highest target price is $155.0 while the lowest target price is $88. The mean of all analyst targets is $122.65 which is 17.07% above today’s ($104.77) stock price. Facebook was the topic of 58 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on November 6 with a “Buy” rating. Morgan Stanley maintained shares with a”Overweight” rating and a $120 target share price in their report from a November 5. Canaccord Genuity maintained FB stock in a recent report from November 5 with a “Buy” rating. Credit Suisse maintained the rating on November 5. Credit Suisse has a “Outperform” rating and a $135 price target on shares. Finally, Jefferies maintained the stock with a “Buy” rating in a report they issued on a November 5.
Twitter stock closed at $22.14 during the last trading session. It is down 40.96% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 38.70%.
From a total of 29 analysts covering Twitter (NYSE:TWTR) stock, 13 rate it a “Buy”, 2 a “Sell”, and 14 a “Hold”. This means that 45% of the ratings are positive. The highest target price is $56 while the lowest target price is $22. The mean of all analyst targets is $34.39 which is 55.33% above today’s ($22.14) stock price. Twitter was the topic of 45 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Credit Agricole initiated shares on December 11 with a “Underperform” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $22 target share price in their report from an October 28. UBS maintained TWTR stock in a recent report from October 28 with a “Buy” rating. Barclays Capital maintained the rating on October 28. Barclays Capital has a “Equal-Weight” rating and a $33 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 28.
The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio is negative, as 102 funds sold all their Twitter Inc shares they owned while 129 reduced their positions. 56 funds bought stakes while 191 increased their total positions. Institutions now own 269.03 million shares which is 10.40% less than the previous share count of 300.24 million in 2015Q2.
Institutional Venture Management Xii Llc holds 100% of its total portfolio in Twitter Inc, equating to 418,115 shares. Rizvi Traverse Management Llc owns 2.80 million shares representing 100% of their total US portfolio. Moreover, Ah Equity Partners Iii L.L.C. has 69.57% of their total portfolio invested in the company, equating to 1,202 shares. The California-based Kpcb Dgf Associates Llc has a total of 28.35% of their portfolio invested in the stock. Bain Capital Venture Investors Llc, a Massachusetts-based fund reported 817,155 shares owned.
Twitter, Inc. is a global platform for public self-expression and conversation in real time. The company has a market cap of $15.70 billion. The Firm offers services and products for users, advertisers, developers and platform and data partners. It currently has negative earnings. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users.