Tags: Twitter | downgrade | Cramer | earnings

Jim Cramer: Twitter 'Becoming a Hated Company By Analysts'

By    |   Monday, 13 January 2014 07:23 AM EST

The micro-blogging stock Twitter faces yet another slump as analysts pile on downgrades prior to releasing its first earnings report as a public company, says CNBC's Jim Cramer, making it a stock that analysts love to hate.

"This company is becoming a hated company by analysts. I find it amazing. A sell? How about a hold?" Cramer noted, referring to Morgan Stanley and Cantor Fitzgerald's recent downgrades to sell.

The social media stock has been on turbulent ride since reaching a high of $74.73 per share on Dec. 26. It was up 40 percent in mid-December over its early November initial public offering, then came crashing down below $60 by Friday, according to CNBC.

Editor’s Note:
These 38 Dates Are Key to Bagging $313,038

The stock took yet another punch from Cowen and Co. as they became the most recent investment firm to release an underperform rating.

Cramer compares Twitter with Amazon and Netflix because the connection between their earnings and market valuations is unclear.

Cramer believes the downgrades were because of concerns Twitter will miss earnings estimates because its advertisers don't get as a great value as does Facebook.

LinkedIn has a better return on investment, he added.

In light of the downgrades, which investors will care? "None whatsoever," Cramer stated.

Youssef Squali of Cantor Fitzgerald believes Twitter's stock price is "excessive" and considers $32 to be a fair value, The Associated Press reported.

Squali explained that Google and Facebook would be better investments.

Editor’s Note: These 38 Dates Are Key to Bagging $313,038

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InvestingAnalysis
The micro-blogging stock Twitter faces yet another slump as analysts pile on downgrades prior to releasing its first earnings report as a public company, says CNBC's Jim Cramer, making it a stock that analysts love to hate.
Twitter,downgrade,Cramer,earnings
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2014-23-13
Monday, 13 January 2014 07:23 AM
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