NEW YORK ( TheStreet) -- Twitter ( TWTR) tumbled 7.29% to $61.46 a share at the close of the trading day on Tuesday, which marked a $4.83 drop from its previous closing price of $66.29.
The stock could still be suffering from Morgan Stanley's downgrade to Underweight on Monday. Moreover, Morgan Stanley set the target price of the stock at $33, which was approximately half of the Monday closing price. The downgrade stemmed from concerns over Twitter's ability to compete with Facebook ( FB) and Google ( GOOG) for advertising money due to its limited advertising avenues.
Twitter's IPO came in Nov. 2013 and peaked at $74.73 on Dec. 26, 2013. Since then, the stock has fluctuated until the drops of the past two days.