NEW YORK (TheStreet) -- Twitter (TWTR) hit a new 52-week low after Axiom Capital issued a price target cut on the social media giant, citing concerns about its growth in its user base. Micron Technology (MU) tumbled after receiving a downgrade from Morgan Stanley. Intel (INTC) climbed higher despite mixed reports from analysts on its future earnings performance.
Twitter dropped 3.5% to close at $34.66. Earlier in the day, its shares hit a new 52-week low of $31.31.
The social media maven took a hit after Axiom Capital cut its price target to $40 a share from $45, as expectations for its second-quarter average monthly user base is anticipated to fall to 302 million from Axiom's previous expectations of 309 million, according to a report in Barron's. Axiom's analyst Victor Anthony is cited in Barron's, saying:
While we are longer-term believers in the monetization opportunity and believe that near-term direct response challenges are solvable, we remain on the sidelines until we see early evidence of a user and engagement fix (visibility remains low) as well as a fix to the recent monetization challenges.
Anthony, according to Barron's, based his price cut on the view that the benefits Twitter captured in the first quarter will not be as strong in the second quarter when it comes to organic growth and growth initiatives.
Meanwhile, Twitter's stock dropped to a level lower than where it was trading on the day it announced its embattled CEO Dick Costolo would be leaving the company on July 1 and that co-founder Jack Dorsey would serve as interim CEO, according to a report in Business Insider. Twitter's stock closed Thursday at $35.83, right before it announced Costolo's departure, according to the report.