Twitter shares slide after IPO underwriters verdict

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Twitter's shares slipped on Monday after some of the five lead underwriters of its initial public offering said the social media firm may not achieve Facebook-like scale and its stock may not rise much higher.

Reuters reports that in their first research reports since the November IPO, only Deutsche Bank and Goldman Sachs recommended buying the stock.

Morgan Stanley and JP Morgan issued the equivalent of 'hold' ratings. One analyst, Justin Post of Bank of America Merrill Lynch, initiated coverage with a sell rating and valued shares at $36, according to theflyonthewall.com.

Twitter shares dipped 1.3% to $41 on Monday. After an explosive debut on 7th November, when shares closed more than 70% above the $26 IPO price, Twitter has churned for weeks in the low $40s.

At $41, the San Francisco-based company still trades at roughly 20 times estimated 2014 revenues, a multiple that dwarfs that of social media peers like Facebook and LinkedIn at roughly 11 and 17.6 times, respectively.

To access the complete Reuters article hit the link below:

Twitter stock gets mixed reviews from IPO underwriters

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