Twitter Downgraded At Raymond James, Concerns Over Growth, Revenue

Twitter Inc. was downgraded to market perform from outperform at Raymond James Friday. The downgrade came as the analysts said the "risk-reward is now more balanced" with shares near their "fair value case" of $19. The analysts added that they expect in-line revenues for the second quarter, but that Wall Street estimates for third-quarter revenue are too high, with Facebook Inc. and Instagram taking more of the social media share. The analysts also expect flat growth in monthly active users for the U.S. in the second quarter. That said, the analysts say Twitter could make more money from new ad products and use live streaming to bring in more users in the long-term. Shares of Twitter were down 1.5% Friday afternoon. The stock had tumbled 21% year to date, but has rallied 5.5% over the past three months while the S&P 500 has gained 3.9%.