Twitter (TWTR) Stock Drops in After-Hours Trading, RBC Downgrades - TheStreet

NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report  were sliding in after-hours trading on Thursday as RBC Capital Markets lowered its stock rating to "underperform" from "market perform" this afternoon. 

The firm also cut its price target to $14 from $17, saying the social media site's "value proposition" to advertisers could be slipping, according to Barron's

RBC conducted a survey of about 1,100 advertising experts, and the results showed they were planning to allocate more online advertising spending to companies such as Alphabet's (GOOGL) Google and Facebook (FB). 

Approximately 60% of marketers feel their return on investments have recently improved on Facebook, while 42% believe they've gotten a solid return on investment on Google. 

The firm added that 26% of respondents plan to "significantly" or "modestly" increase their ad spending on Twitter, but 28% indicated they intend to decrease their Twitter ad spending. 

"This is the weakest result we have seen and the first time we have seen a negative skew towards spending," RBC said in the analyst note. 

Additionally, RBC analyst Mark Mahaney said on CNBC's"Squawk Box" this morning that he views Twitter as the most "disappointing" large cap in the Internet space. 

He added that he doesn't expect Twitter's second Thursday Night Football live stream tonight to "move the needle" for the company. 

Separately, 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. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings team rates Twitter as a Sell with a ratings score of D. This is driven by some concerns, which it believes 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 it covers. Among the areas it feels are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TWTR


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