Analysts expect further downfall in Twitter's 'hyped' share values

Washington, Nov. 9 : Twitter's frenzied public debut sent the company's shares up by 73 percent, but analysts have warned of a tech bubble burst as the current share price of a company that hasn't seen profit is unreal.

Analysts, who talked to CNN, said that the valuation of 24.4 billion dollars was far too high for Twitter that is losing money with some warning of a huge risk to early investors.

The microblogging site in its IPO filing revealed that it has not turned a profit for at least the last three years, and losses accelerated in the first nine months of 2013.

Pivotal Research Group senior analyst Brian Wieser downgraded his rating on the Twitter stock to 'sell' from 'buy' in less than one hour of going into trade and said that 45 dollars per share would be justified only if Twitter could log more than 6 billion dollars in annual sales by 2018.

Another analyst reiterated that Twitter's unreal valuation is disconnected from any logical calculation and reflects a huge downside risk for investors if Twitter does not meet expectations at every quarterly earnings release from now on.

--ANI (Posted on 09-11-2013)

world-news headlines

Snowden takes up post of Glasgow University rector

South Korean ferry mishap: Death toll crosses 150

BBC's Top Gear apologises for racist remark

Klopp, Guardiola not interested in Manchester United job

Obama arrives in Japan on four-nation Asian trip

China developing Linux-based OS after Windows XP shutdown

Bangladesh building victims need help: rights group

Barcelona transfer ban on hold

Kim Jong-un sending three experts to France to learn art of making his favourite cheese

Soon, 'teardrop' shaped pedal-bike that will let you zip at 90mph!

Reddit bans usage of controversial words

Single currency notes infested with over 3,000 types of bacteria

Quick Links: Goa | Munnar | Pondicherry | Free Yearly Horoscope '2014


Your e-mail:

Your Full Name:

Type verification image:
verification image, type it in the box


Back to Top