Twitter has had a bad 2016—bad enough for one analyst to call the company “toast.”
Trip Chowdhry, the managing director of equity research at Global Equities Research, has a reputation for being hard on struggling companies, but even so, his roasting of Twitter—he described the social network “not even a $10 stock” in his latest research note—is jarring.
Eight executives have left Twitter this year, including chief technology officer Adam Messinger. User growth for the platform also stagnated this year.
Twitter’s stock currently hovers around $18, so Chowdhry is effectively saying the company could lose half its value in the future. The analyst says Twitter’s data quality is “horrible,” which translates into poor ad targeting, thus unhappy advertisers, which may be why Twitter has faced difficulties monetizing.
According to Reuters data, Twitter’s stock has 25 hold ratings, six sell ratings, two strong sell ratings, and six buy ratings.
Twitter tried to sell its business earlier this year, but the only serious suitor—Salesforce—said an acquisition of the company wouldn’t make sense.