Twitter Inc (NYSE:TWTR) shares have plunged yet again today, hitting a new 52-week low of $14.73 per share at one point. This comes after the company announced that they will be rolling out new algorithmic filtering among their social media platform. Twitters users and investors alike have shown mixed reactions to ths news, but it seems as though there are more negative reactions than positive. An algorithmic filtering for Twitter accounts could ruin what had initially made Twitter so popular — live streaming of tweets.
Incidentally after the negative response, which included a #RIPTwitter hashtag, Twitter Inc (NYSE:TWTR) CEO Jack Dorsey responded:
“Hello Twitter! Regarding #RIPTwitter: I want you all to know we’re always listening. We never planned to reorder timelines next week. I *love* real-time. We love the live stream. It’s us. And we’re going to continue to refine it to make Twitter feel more, not less, live!”<
It will be interesting to see what Twitter ultimately does. Do they modify their plan a bit because of the backlash? Do they implement the algorithmic filtering at all? Only time will tell.
The stock is down 5.73% or $0.9 following the news, hitting $14.82 per share. Approximately 20.19 million shares traded hands. TWTR shares have declined 55.99% since July 2, 2015 and are currently downtrending. It has underperformed the S&P500 by 46.52%.
From a total of 31 analysts covering Twitter (NYSE:TWTR) stock, 13 rate it a “Buy”, 3 a “Sell”, and 15 a “Hold”. This means that 42% of the ratings are positive. The highest target price is $56 while the lowest target price is $19. The mean of all analyst targets is $31.97 which is 115.72% above today’s ($14.82) stock price. Twitter was the topic of 56 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus downgraded shares on February 2 to a “Sell” rating. Mizuho initiated shares with a”Neutral” rating and a $21.0 target share price in their report from a January 13. Pivotal Research maintained TWTR stock in a recent report from January 25 with a “Buy” rating. Morgan Stanley maintained the rating on October 28. Morgan Stanley has a “Underweight” rating and a $22 price target on shares. Finally, Standpoint Research initiated the stock with a “Buy” rating in a report they issued on a January 20.
The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio turned 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 $9.41 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.