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) is having its sixth busiest day in terms of volume, and it's a
little after noon.
The bulls may make the case that higher prices await Twitter
because there won't be many folks left to sell after this
shellacking, while the bears will point to the still-high valuation
to defend their position.
I would watch for analyst upgrades based on the price action.
Twitter has by far the most bearish coverage among social media
stocks on Wall Street. The current distribution is seven buys, 13
holds, and 11 sells.
) has 37 buys, seven holds, and zero sells.
) has 25 buys, 12 holds, and zero sells.
) has 21 buys, 11 holds, and zero sells.
) has 20 buys, nine holds, and a mere two sells.
The chart below shows the distribution of analyst ratings among the
aforementioned social media stocks.
Click to enlarge
Analysts at firms like RW Baird and
) have Neutral ratings and $50 target prices, implying a 44%
expected return from here. There are also some firms with sell
ratings that could come up to Hold/Neutral, like
(UBS), which has a $35 target price, and Wunderlich, which has a
$38 target price.
It will be interesting to see if any firm is willing to make a
stand here with the stock in uncharted territory.