Why Twitter (TWTR) Is Down Today

NEW YORK (TheStreet) -- Twitter (TWTR) fell 5% to $65.55 in premarket trading Monday following a downgrade to "underweight" from "equal-weight" by Morgan Stanley.

The bank maintains its 12-month price target of $33 for Twitter. Twitter's Amplify TV product, which brings TV clips and ads to the social network, is a big reason for of the company's current stock price, as it is a major part of its revenue model. However, Morgan Stanley believes that TV ad budgets will go to Google's (GOOG) YouTube and Facebook  (FB) over Twitter as online ad revenue competition increases. 

While Morgan Stanley maintains its current price target for Twitter, it does admit that "any positive estimate revisions following 4Q2013 results in Late January or February" could boost the stock in the near-term.


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