Shares of Twitter fell more than 5 percent Friday morning as a Macquarie Capital analyst lowered his investment rating on the social media company, citing a major run-up in the stock.
Twitter shares have more than doubled from the stock's initial public offering price of $26 in November. Most of those gains have come just in the last two weeks, after the San Francisco company rolled out a new targeted advertising program.
Twitter has a "bright future and many opportunities ahead," says Macquarie Capital analyst Ben Schachter, but "nothing has changed over the last 15 days to justify the rise in valuation." In a note to clients, Schachter downgraded Twitter's stock rating to "Underperform" from "Neutral." An "Underperform" rating is equivalent to a "Sell."
Representatives from Twitter did not immediately respond to an emailed request for comment. In morning trading, Twitter fell $3.76 to $69.55.
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