After skyrocketing more than 70% on its market debut, Twitter
TWTR
-7.24%
gave up 7.2% on Friday, its second day of trading, drawing even more comparisons with Facebook Inc.
FB
-0.06%
. Like Twitter, Facebook’s initial public offering in May 2012 had been
the marquee IPO of the year. But after a first day pop, the stock failed
to live up to the hype and traded below its IPO price of $38 until
earlier this year when investors saw visible proof that the company’s
monetization effort was bearing fruit
Twitter faces much of the same obstacles in convincing skeptics that it
has a viable product in its microblogging service, and its key task will
be to demonstrate that it can continue to attract enough active users
to continue growing its revenue.
“Twitter is likely in the early innings of its growth. We believe that
the majority of the world’s 2.4 billion Internet users have great
potential to find something or someone on Twitter that they are
interested in,” Michael Pachter, an analyst at Wedbush, said in a
report.
He initiated coverage of Twitter’s with a neutral rating and a price target of $37.
Source : MarketWatch
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