Analyst: Twitter is 'toast', stock isn't even worth $10

Analyst slams Twitter, saying the company is 'toast' and that their stock isn't even worth $10.

@anthony256
Published Thu, Dec 22 2016 5:14 AM CST   |   Updated Tue, Nov 3 2020 11:57 AM CST

Twitter is circling the drain right now, with Global Equities Research's Managing Director Trip Chowdhry saying that Twitter is "toast" and "not even a $10 stock". Harsh words, but with the departure of another top level executive this week, he could be right.

Analyst: Twitter is 'toast', stock isn't even worth $10 | TweakTown.com

Josh McFarland, VP of Product at Twitter said he was leaving the company on the same day that Twitter's Chief Technology Officer Adam Messinger tweeting that he is leaving the social networking company to "take some time off". They added onto the pile with Adam Bain, Chief Operating Officer of Twitter, who was replaced by Chief Financial Officer Anthony Noto, for now.

Chowdhry continued: "Many investors were foolishly building (an) investment thesis based on complete stupidity". Twitter shares closed at $17.92 on Tuesday, so if Chowdhry is right and Twitter stock drops to $10, it would be a 44% drop from where it sits today. Chowdhry added that Twitter data quality is "horrible", and that many pollsters used Twitter data to predict Hillary Clinton's win - but with Donald Trump winning, it shows that Twitter's data isn't very valuable at all.

"If data quality is bad, ad targeting is bad, and if ad targeting is bad, advertisers are not happy, and hence monetization will remain challenging for Twitter", added Chowdhry.

NEWS SOURCE:cnbc.com

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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