Twitter (TWTR) Stock Down, Denies U.S. Intelligence Access to Analytics Service
NEW YORK (TheStreet) -- Twitter (TWTR) - Get Report shares are falling by 0.59% to $14.31 in late morning trading on Monday, as the microblogging platform has barred U.S. law enforcement and intelligence service from using Dataminr, a data analytics service.
The company has reportedly told Dataminr, which analyzes tweets to inform users about news events, to stop supplying information to U.S. intelligence agencies, the Wall Street Journal first reported on Sunday. This was the most recent example of strained relations between Silicon Valley and the government over terrorism and privacy.
While Dataminr is not a direct offering by Twitter, the company does own a 5% stake in it.
Since the U.S. law enforcement is Dataminr's client, Twitter said it was worried that it was seen as too close to federal agencies, which could affect user trust, The Verge noted.
While Twitter's action to cut off government access to its analytics has not been made public, The Journal confirmed with a senior U.S. intelligence official and others that this in fact did happen.
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Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TWTR
