Twitter (NYSE:TWTR) is facing a particularly unhappy Xmas this year after multiple executive departures have highlighted the turbulent flight ahead for the online news and social networking service.
Most recently, on Dec 20 news broke of the departure of both the chief technology officer, Adam Messinger, and Josh McFarland, product VP. This follows months of nervous chatter surrounding Twitter’s slowing revenue growth, its dismal user growth, the failure of new initiatives and high stock-based compensation.
We take a closer look and provide you with some better stock ideas to make this Christmas a little bit sweeter.
Five-Star Advice
Neil Doshi is an analyst at Mizuho Securities who has a strong track record on his Twitter recommendations with a 71% success rate on the stock and an average return on the stock of 20.7% according to TipRanks’ financial accountability engine.
On Dec 21 he reiterated his Sell rating for Twitter stock: “one C-Level departure is a red flag; two in a quarter is very disconcerting,” wrote Doshi, who is slightly more bearish than TipRanks’ Twitter analyst consensus rating of Hold. He gave a price target for Twitter of $15- marking a 9.09% downside from the share price on Friday’s close.
The TipRanks graph below shows how Doshi’s Twitter recommendations have becoming increasingly bearish as Twitter’s share price has dropped from just over $56 in December 2013.
Another interesting expert to track is Leo Sun, a top financial blogger at Motley Fool. TipRanks reveals that Sun has a very impressive 100% success rate with his Twitter recommendations and an average profit on Twitter stock of 33.5%.
On Dec 10, Sun named Twitter as “one of three stocks I’d be glad to dump for a tax deduction” (the other two being GoPro (GPRO) and InvenSense (INVN)). The best hope of recovery for Twitter is a buyout, Sun writes, and the buzz of a potential buy out by Disney (DIS) or Salesforce (CRM) has died down. As Twitter’s core business model crumbles, investors are likely to wait for even lower stock process before a buyout offer makes it back to the table.
Tracking Twitter News
You can follow all the Twitter news on the web in real-time using TipRanks’ new news page. By using Natural Language Processing algorithms, TipRanks scans the web for Twitter articles and automatically splits the news into bullish/ bearish categories so that investors can see at a glance the overall outlook for a specific stock.
Tech Sector Sentiment
Twitter may be going through a rough patch but there are some very strong tech stocks out there. In fact, the sentiment towards the tech sector as a whole is very bullish as this new TipRanks’ graphic shows:
In this case TipRanks has calculated the ratio of bullish/ bearish news for Twitter in the last week to be 33%/67% vs a positive 78%/22% for the sector average.
Better Stocks for a Better Xmas
We recently wrote a blog post on where the top analysts- including TipRanks’ number 1 rated tech analyst- think you should be investing in 2017.
Click here to take a look at the blog post or check out the top 25 tech analysts on TipRanks here.
You can also scroll down to the end of the Twitter stock page on TipRanks to see what financial experts are saying about similar stocks to Twitter.
Here we can see that stocks such as Alphabet Inc (GOOGL), Facebook (FB) and social networking service Meetme (MEET) all have an analyst consensus rating on TipRanks of Strong Buy. In fact TipRanks shows that in the last three months only 7.41% of analysts did not give Alphabet a Buy rating.
Go to Twitter’s stock page now for more investment ideas.
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