Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – Twitter Inc (NYSE:TWTR) was down by 7.16 percent during trading on 24th April in the run up to its earnings call scheduled to be held on 29th April. The run on the stock price was triggered by unflattering analyst coverage of the stock ahead of the first quarter earnings call tomorrow.
The micro blogging sites price target was downgraded by rating agency Wedbush on 24th April. The commentary which followed the PT downgrade from previously recommended $58 to new benchmark of $50 in anticipation of a shellacking the stock would suffer in the event of tepid results being announced as part of the earnings call announcement.
The down cast expectations about the micro blogging platform is due the analyst community estimation that the tech firm is going to slip back to en earnings loss in 1Q after it managed to post profits during the 4Q13. The dip in earnings is being predicted since the firm’s go to market strategy for increasing revenue flow is not growing fast enough. This P.T call on the stock of Twitter Inc (NYSE:TWTR) by the analyst comes as a surprise to some, since the tech provider which is reporting results for the second time after going public is expected to show a 140 percent increase over its previous quarter revenue of $241.5 million. Analysts have also predicted that the loss per share for the reporting quarter is going to be $0.03.
It is relevant here to recall that during the fourth quarter, Twitter Inc (NYSE:TWTR) had posted net sales of $242.7 million, which translates into a 116 percent increase over its previous 4Q. Analysts will also be paying close attention to the strategy the company is following to increase its user base. This number assumes big importance to a social networking site since advertisers will pay more to social platforms depending on the active user base.