Shares of Twitter fell 7 percent after a devastating report from Morgan Stanley analysts was released. The firm lowered the rating of the social network to “underweight” (light weight), with an estimate of 24 dollars per share, below the 30 with which it was trading on the stock market.
The note, titled “A Moment Too Late?” affirms that Twitter shows signs of limited user growth, a drop in its engagement (participation levels), lack of content, in addition Thailand Phone Number List to being overloaded with ads with a price too high amid increased competition in the space environment mobile. The note notes that Twitter has 10 times more ads than Facebook, which has a negative effect on the click-through rate and could drive users away from the platform.
Analyst Brian Nowak assured that he does not see how Twitter will be able to double its income between now and 2017, as demanded by its investors, given that the time that users spend on that network has dropped 33 percent annually in the third quarter of 2015 .
According to the research firm Statista, marketers rank Twitter as the least preferred social network to place ads for their brands with 23 percent of mentions, while Facebook Brother Cell Phone List was singled out 92 percent of the time. , YouTube 35 percent, and even LinkedIn garnered more mentions than Twitter, with 24 percent of the preferences.