"While TWTR is the best Internet platform for real-time content discovery, we believe the stock's current valuation of 10x 2015E sales, a 52% premium to peers, fully reflects future prospects based on current growth rates," Oppenheimer said.
Specifically, recent results suggest the current incarnation of the product may not have the mass-market appeal of other social networks, analysts noted.
As a result, Oppenheimer said it would need to see monthly active users accelerate to become positive on the stock, based on planned product changes, or an indication that Twitter can monetize its 500 million "logged-off" users.
Separately, Twitter recently started to sell advertising in Russia, shrugging off regulatory hurdles and a slowing economy as part of a push to add revenue outside the U.S., Bloomberg reports.
TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWITTER INC (TWTR) a SELL. This is driven by several weaknesses, 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 generally deteriorating net income."