Twitter shares slump to all-time low as user growth stalls
NEW YORK/SAN FRANCISCO (Reuters) - Shares of social media website Twitter Inc (TWTR.N: Quote) hit an all-time low on Thursday after the company said late Wednesday that user growth stalled for the first time since the company went public in 2013.
More than 20 brokerages cut price targets on the shares, which have fallen more than 50 percent since chief executive Jack Dorsey returned in July. The median price target for the stock is still $21, 50 percent higher than the current price.
Shares were last down more than 5 percent on the day, at one point hitting an all-time low of $13.91 a share.
Currently, 14 of 45 brokers have a "buy" rating on the company.
Starmine, a unit of Thomson Reuters, pegs the company's intrinsic value at $11.40 a share, implying further stock declines.
In its earnings report on Wednesday, Twitter said it had 320 million average monthly active users in the fourth quarter, unchanged from the third quarter and lagging a forecast for 323 million from RBC Capital Markets.
But Dorsey told analysts that monthly active usage in January "has bounced back to Q3 levels."
Facing slowing user growth, Twitter has been experimenting under Dorsey, who became interim CEO in July and then CEO in October, with ways to make its website more engaging.
But so far they have not paid off with additional user growth. Continued...