Shares of Twitter fell more than 4.4% in morning trading Wednesday as the departure of two more executives has both analysts and investors feeling like it’s time to give up on the struggling social media company.
In what is now becoming a mass exodus of employees, Twitter’s chief technology officer, Adam Messinger, and its V.P. of product, Josh McFarland, announced Tuesday that they would be leaving the company.
The pair join former COO Adam Bain, who left Twitter last month, as well as over half of the rest of the company’s leadership team that have departed throughout the year. The list includes VP of global media Katie Jacobs Stanton, SVP of engineering Alex Roetter, VP of human resources Brian Schipper, and SVP of product Kevil Weil.
In a year that has seen Twitter undergo several rounds of buyout rumors, the departure of the company’s top executives certainly does not make the social media platform any more attractive to the likes of Disney (DIS - Free Report) , Alphabet (GOOGL - Free Report) , or Salesforce (CRM - Free Report) .
In fact, Twitter’s latest employee departures have at least one analyst slamming the stock. Trip Chowdry, a director at Global Equities Research, issued a note as a response to Bain and McFarland’s resignations, arguing that the company is “toast” and “not even a $10 stock.”
Twitter closed at $17.92 per share on Tuesday, which means Chowdry’s sub-$10 per share call is bold. Chowdry’s stance is based on the fact that, unlike other social media companies like Facebook , Twitter is unable to effectively target its users with relevant ads because it has poor data.
“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,” said Chowdry.
As for now, Twitter remains a Zacks Rank #3 (Hold). The company’s current-quarter Zacks Consensus Estimate for earnings has lost a penny over the last 60 days.
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Shares of Twitter fell more than 4.4% in morning trading Wednesday as the departure of two more executives has both analysts and investors feeling like it’s time to give up on the struggling social media company.
In what is now becoming a mass exodus of employees, Twitter’s chief technology officer, Adam Messinger, and its V.P. of product, Josh McFarland, announced Tuesday that they would be leaving the company.
The pair join former COO Adam Bain, who left Twitter last month, as well as over half of the rest of the company’s leadership team that have departed throughout the year. The list includes VP of global media Katie Jacobs Stanton, SVP of engineering Alex Roetter, VP of human resources Brian Schipper, and SVP of product Kevil Weil.
In a year that has seen Twitter undergo several rounds of buyout rumors, the departure of the company’s top executives certainly does not make the social media platform any more attractive to the likes of Disney (DIS - Free Report) , Alphabet (GOOGL - Free Report) , or Salesforce (CRM - Free Report) .
In fact, Twitter’s latest employee departures have at least one analyst slamming the stock. Trip Chowdry, a director at Global Equities Research, issued a note as a response to Bain and McFarland’s resignations, arguing that the company is “toast” and “not even a $10 stock.”
Twitter closed at $17.92 per share on Tuesday, which means Chowdry’s sub-$10 per share call is bold. Chowdry’s stance is based on the fact that, unlike other social media companies like Facebook , Twitter is unable to effectively target its users with relevant ads because it has poor data.
“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,” said Chowdry.
As for now, Twitter remains a Zacks Rank #3 (Hold). The company’s current-quarter Zacks Consensus Estimate for earnings has lost a penny over the last 60 days.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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