NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report are advancing by 2.6% to $14.40 in mid-afternoon trading on Wednesday, after Axiom Capital contended that its live-streaming video service Periscope presents an "underappreciated" opportunity.
Periscope's user base appears to be engaged and the number of views per live video is "meaningfully higher" on Periscope than on Facebook (FB), the firm noted.
Additionally, competition from Facebook's Instagram and privately held Snapchat, as well as concerns about user growth and lower brand advertising demand are already priced into shares, the firm said, Barron's reports.
"With sentiment at all-time lows, and with an asymmetric risk-reward, investors should reconsider going long the stock at these levels," Axiom wrote in a note, although the firm cut its price target to $18 from $24.
Yesterday, the stock fell after MoffettNathanson downgraded shares to "sell" from "neutral," citing "fatigued" advertisers and competition from the likes of Instagram, Snapchat, and Pinterest, according to Barron's.
(Twitter is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Twitter's weaknesses include a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: TWTR
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 article's author.