Twitter‘s stock has lost favor among investors this year, with its stock plunging by around 30% year-to-date. Slow growth in its user base, coupled with a soft future outlook, have been mainly been responsible for the bleak performance. Additionally, a spate of management changes have also weighed on the stock. Though our $34 price estimate for the company’s stock represents a premium of over 30% to the current market price, we believe there are certain plausible scenarios that could lead to wide swings in Twitter’s valuation over the coming years. More specifically, the possibility of a less-than-expected increase in the user base and advertising revenues could adversely impact the stock over the next several years.

from Forbes – Tech http://ift.tt/1HABG0O
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