Twitter Inc (TWTR): Pivotal Gets Buy And Sell Calls Right

Twitter Inc (TWTR): Pivotal Gets Buy And Sell Calls Right

Whether you love it or hate, Twitter Inc (NYSE:TWTR) has certainly kept analysts on their toes since its IPO at the end of last year. Pivotal research analyst, Brian Wieser, has been there from the beginning, advising BUY Twitter right before its IPO, and just recently advising SELL Twitter. Brian has adjusted his recommendations according to valuation, and has earned a 75% success rate recommending Twitter. Brian has also had success recommending other technology stocks, earning the number 44 spot out of 2992 analysts, with an overall average return of +7.3% over S&P 500 (INDEXSP:.INX) and a success rate of 68%.   

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Today on Flashback Friday, we review Brian’s past Twitter Inc (NYSE:TWTR) recommendations to see how he earned his high success rate. To review all of Brian’s recommendations, download TipRanks.

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Brian’s most recent SELL Twitter Inc (NYSE:TWTR) recommendation follows his February SELL rating after Q4 results revealed a decline in user usage and a slowdown in new user growth. Brian noted, “we have always held that Twitter as it stands is a niche medium, but that doesn’t mean that it doesn’t retain significant value for advertisers at its current scale.” However, Brian followed up by saying, “Still, valuation is too robust at current level vs. alternatives and we maintain a SELL rating and $34 price target.” This recommendation earned Brian +12.7% over S&P 500 (INDEXSP:.INX).

In January, Brian was stating similar arguments for his SELL Twitter Inc (NYSE:TWTR) rating. Brian still recognized Twitter as a “stellar company with tremendous promise,” but he still felt that the share price was too difficult to justify. He believed the price was unsustainable due to its impact of “limited float after the success of its IPO,” and by the fact that “shares seem to be driven by momentum rather than fundamentals”. Brian ended up with +18.2% over S&P-500.

When Brian first recommended Twitter Inc (NYSE:TWTR), he did not feel that the stock was overpriced at $29 right before its IPO. Brian recommended BUY Twitter in October 2013, and ended up earning one of his highest returns of +73.3% over S&P-500! But less than a month later, Brian’s change of heart to downgrade Twitter from BUY to SELL, left him with a  loss. Brian recommended that you if you were hanging on to the stock you should get rid of it adding, “if there are willing buyers who have a view of the business today that gets them comfortable with this valuation then those people should hold it, but I can’t get there, and I’m not recommending my clients hold it.” This recommendation left Brian with -35.3% over S&P-500. However, Brian’s next two SELL Twitter recommendations brought him positive returns of +12.7% and +18.2% over S&P-500.

To see if Brian’s latest SELL Twitter Inc (NYSE:TWTR) recommendation improves his success rate, download TipRanks, and start making informed financial decisions with advice you can trust.

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