If Twitter is turning a corner, it’s apparently still doing so too slowly for MoffettNathanson analysts – who, in a note to investors, have downgraded the social media site from “neutral” to “sell”.
In the note quoted by CNBC, MoffettNathanson has cited advertiser fatigue and a difficult future as factors influencing the downgrade. Warning that “hope is not a strategy”, the firm has also insisted that Twitter’s recently-introduced initiatives to turn the tide could be “too little, too late”.
The analysts observed that, while “the monetization of logged-out users and courting direct response advertisers through ROI and measurement partnerships like the DoubleClick integration could lead to some stabilization and possibly upside in late ’16/ early ’17”, the likelihood of a meaningful payoff remains small and so “doesn’t justify owning the stock here”.
Since the start of the year, Twitter’s stock has dropped by over 39%. If there’s light at the end of the tunnel for Twitter, the company could still be looking at a lengthy trek on the way there.