The little bird continues to lose altitude. Twitter's 2014 begins as 2013 ended: badly. The latest rejection of the popular social network comes from Morgan Stanley, which has cut its judgment on the company from equal to underweight.
However, it was not a downgrade like many others. Analysts of the American Investment Bank have used a heavy hand, going so far as to argue that in the near future the shares of Twitter will be destined to halve their value, collapsing from the current 64 to 33 dollars. In any case, this would be a higher price than the placement price, which took place last November 7 at 26 dollars.
Morgan Stanley believes that "Twitter's success" is "far from guaranteed," as Facebook "continues to have a significant advantage as both companies compete on the advertising front." Google and its YouTube also "remain a dominant force in all other digital advertising formats," argue the analysts.
Moral of the story: as if they were communicating vessels, the downgrading of Twitter corresponds to the upgrade of Facebook and Google, on which Morgan Stanley has raised the target price respectively from 53 to 62 and from 1.075 to 1.172 dollars.
