Evercore ISI Cuts Twitter's Price Target: What It Means for Mutual Fund Investors (TWTR)

Welcome to MutualFunds.com. Please help us personalize your experience.

Select the one that best describes you

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission, we hope you enjoy your experience


Find the latest content and information here about the 2019 Charles Schwab Impact Conference.


Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

Twitter logo in blue


Evercore ISI Cuts Twitter's Price Target: What It Means for Mutual Fund Investors (TWTR)

Shauna O'Brien Dec 16, 2014

Evercore ISI has lowered its price target on Twitter. Here’s what the move means for mutual fund investors.

Inside the Analyst Move

Evercore ISI analyst Ken Sena reported that he has cut his price target on Twitter (TWTR) from $55 to $45. This new price target suggests a 23% increase from the stock’s current price. The firm has maintained a “Buy” rating on TWTR.

The analyst commented: “Using today’s comScore release, in addition to Evercore ISI survey work, we parse Twitter’s relatively weak October/November traffic trends and offer comparison vs. peers across mobile usage. Unfortunately, we find TWTR to be ceding some ground to faster growing competitors, such as Instagram, who also now rival TWTR’s scale. And while Oct. and Nov. user and engagement trends underperformed 3Q14 levels, it is worth noting that we saw a positive growth inflection in US MAUs in Nov. to 22% vs. Oct.’s 19%, possibly signaling recent success. Still, the data broadly points to needed conservatism around our MAU and ad growth forecasts. On lowered estimates, particularly in 2016, what we had been citing as an inflection year, our target lowers to $45 from $55.”

Facebook Is Dominating the Social Media World

There has been a lot of bullish talk regarding Twitter among analysts and investors. Despite the optimistic talk, investors should realize the Facebook (FB) is the winner among the two social media giants. It is important to remember that Twitter is not yet a profitable company and should not be directly compared to FB.

The analyst move today takes Twitter’s slowing traffic trends into consideration with the new price target, but still rates the company as a “Buy.”

Mutual Funds to Watch

Investors seeking exposure to TWTR may want to consider the funds below. These funds currently have the largest stakes in the company.

The Bottom Line

By investing in one of the funds listed above, investors are exposed to a broad range of holdings and industries. Investors interested in TWTR may also be interested in Facebook (FB) and Google (GOOG).

Shares of TWTR are down 42% YTD.

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Please Enter Your Email
Please Select Your Advisor Type

Popular Articles

Download Our Free Report

Why 30 trillion is invested in mutual funds book