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Analyst: Twitter’s valuation is “just wrong!”

What is Twitter worth? In a research note today, tech and media analyst Michael Nathanson had few kind words for the struggling social network, saying the company was grossly overvalued when you look at the many strikes against it. Nathanson’s firm, MoffettNathanson, downgraded Twitter to a “sell” last year. 

“[W]e think Twitter is a secular short, losing favor with both users and advertisers alike, and finding itself in a spiral that will be very tough to reverse. As a result, we think it should be valued much more conservatively than it is today.”

Nathanson wrote that Twitter should be trading at 2.7X sales considering current consensus estimates on revenue growth. At that multiple, Twitter would be worth $10 a share, Nathanson wrote. The stock is currently trading at more than $17 a share.


[Photo: Kimberly White/Getty Images for Vanity Fair]CZ