The stock of Twitter Inc (NYSE: TWTR) is trading lower by approximately 20 percent on a year-to-date basis and a number of people have speculated that the underperforming stock of the microblogging site could experience a buyout.
Lead technical analyst Mark Mahaney of RBC Capital Markets explained the reason the TWTR stock has been one of the most sluggish stocks in the large-cap internet space. Moreover, he also shared his thoughts on a potential takeover in the future.
According to Mr. Mahaney, “The biggest disappointment in the large cap Internet space has been Twitter. Even with NFL streaming on Thursday nights, I’m not sure it moves the needle.”
Although the RBC analyst would not set aside the possibility of a possible buyout of the microblogging company, Mahaney thinks that it will occur anytime soon.
“It’s highly unlikely I don’t think there’s a strategic bidder in the Internet space. Maybe [Alphabet’s] Google (GOOGL), but I think there’d be a lot of regulatory issues there. I think there’s a Yahoo! (YHOO) scenario for Twitter, but remember Yahoo! got bought after years and years of no growth, so we could see Twitter acquired, but that’s five years down the road,” the analyst further stated.
The TWTR stock is trading higher during the early morning trading hours on Thursday.
We rated the shares of Twitter as a Sell due to some concerns that we think have a more significant effect than any strengths. We believe that the company’s problems could make it more challenging for investors to attain positive results in comparison to other stocks. The main weakness that we see in the company is the generally lackluster historical performance of the TWTR stock itself.
Please note that we have objectively rated the microblogging firm’s stock based on its risk-adjusted total return potential over a one year investment period. Furthermore, we did not rate Twitter’s stock based on today’s news.
As of 10:50 AM GMT -4 on September 22, the TWTR shares are changing hands at $18.67, up by 0.97 percent or 0.18 points. It opened at $18.52, reached an intraday high of $18.92 and an intraday low of $18.50. Moreover, its market capitalization currently stands at 13.33 billion.