Twitter Shares Fall After The Stock Is Downgraded To Sell At Stifel

Twitter shares fell 3% Tuesday morning after Stifel analysts downgraded the stock to sell from hold. The analysts said they had previously had the sell rating based on potential product changes that could boost the stock, but now they have failed to see that change materialize. Shares of Twitter have fallen 39% in the past three months compared with the S&P 500's drop of 8%. The analysts cite concerns including a slowing monthly active user growth, Facebook's dominance over advertising revenue and time spent per user and Twitter's over-monetization of a smaller audience compared to Facebook. "Twitter is a product that has never fully developed into a sustainable public company due to either poor strategy, poor execution or that it was never destined to be one," the analysts wrote. The analysts set a price target of $14.