Twitter Inc. (NYSE:TWTR) shares were downgraded by Evercore ISI to Hold from Buy Thursday. The firm also cut Twitter’s price target to $39 per share from $49, expressing concerns about the social media site’s slow user growth.
“We no longer have the same conviction we once did that Twitter under-monetizes on the basis of its overall influence, the result is a more conservative view of valuation and the company’s long-term growth prospects,” Ken Sena, analyst at Evercore ISI, said in a research note Thursday.
Still, shares of Twitter, which have lost 11 percent of their value since its IPO in November 2013, added nearly 2 percent Thursday to $37.71 in morning trading.
The report comes a day after Twitter's annual shareholder meeting in San Francisco. Investor Chris Sacca, a former adviser to Twitter who invested in the company through his own firm, Lowercase Capital LLC, published a 8,500-word essay on “What Twitter Can Be,” arguing the company has “failed to tell its own story.”
Sacca also didn’t shy away from saying which technology company Twitter would be a good fit with in a merger scenario. “I think it would be a fantastic use of Google’s cash,” Sacca said on CNBC Wednesday.
Here are other stocks to watch Thursday:
DISH Network Corp. (NASDAQ:DISH) is in talks to merge with T-Mobile US Inc. (NYSE:TMUS), the Wall Street Journal reported, marking the latest multibillion-dollar consolidation deal in the media and telecommunications industries. A price has yet to be determined. Talks are still in the "formative stage," and no price has been determined.
Dish CEO Charlie Ergen would become chairman of the company, and T-Mobile CEO John Legere would head the combined company as chief executive, people familiar with the matter told the Wall Street Journal.
Shares of DISH Network Corp. jumped 6 percent to $75.30 in morning trading, while T-Mobile US Inc. gained 4 percent to $40 per share.
Shares of Molycorp Inc. (NYSE:MCP) plunged 23 percent Thursday, following a report the rare earth oxide producer plans to file for Chapter 11 bankruptcy protection as soon as this month, the Wall Street Journal said. Molycorp announced earlier this week it would delay a $32.5 million loan payment, which ignited concerns the company would file for bankruptcy.
The stock tumbled 23.2 percent to 31 cents in morning trading Thursday.