NEW YORK (TheStreet) -- Shares of Twitter Inc (TWTR) were down 2.22% to $33.90 in early market trading Tuesday, after the social media giant had its rating lowered to "neutral" from "buy" by analysts at MKM Partners this morning.
The firm also slashed its price target to $39 from $57, saying there are no catalysts for an improving sentiment in the next two quarters.
Still, MKM analysts see potential for a big upside in the long-term if the social media giant is able to improve user experience.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio said on CNBC's Mad Money last night that if Twitter doesn't get its act together, it could be the first big fizzle of the second Internet revolution.
San Francisco-based Twitter is a global platform for public self-expression and conversation in real time, where any user can create a tweet and any user can follow other users.
The company generates its advertising revenue primarily from the sale of its three promoted products which include promoted tweets, promoted accounts and promoted trends.
Insight from TheStreet's Research Team:
Jim Cramer commented on Twitter in a recent post on RealMoney.com. Here is what Cramer had to say about the stock:
Here's how you handle the Twitter (TWTR) situation if you are on the board of Twitter.
You first say, "We have a real problem here, we are not living up to our potential. It might be because we don't have the right product. It might be because we don't have the right people at the helm. It might be because it is too hard to use. Maybe it is because the customers don't like it as much, and that's why they aren't signing up as they used to. Or maybe the sponsors and advertisers don't like it because they aren't getting success from it, and they want a better return.
So, let's do this.
Let's fire Costolo because he's so uncertain of himself and seems so lacking in understanding of the depth of the problems, and let's select someone from the board who can run a search, or alternatively, if it is true that he's wanted to leave for some time, then we should have been interviewing for months and be ready with the announcement."
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