Sunday, December 10, 2023
HomestocksCramer: Twitter becoming hated by analysts

Cramer: Twitter becoming hated by analysts

With Twitter facing a steady stream of downgrades ahead of its first earnings report as a public company, CNBC's Jim Cramer said Thursday the micro-blogging site has become a stock that market professionals love to hate.

"This company is becoming a hated company by analysts," Cramer said on "Squawk on the Street." "I find it amazing. A sell? How about a hold?"

Cowen and Co. became the latest investment firm to pile on Twitter, initiating coverage on the stock with an under-perform rating. Since its early November IPO, the social media stock has been on a wild ride, rising 40 percent in mid-December to a high of $74.73 per share on Dec. 26, then sharply dropping below $60 by Thursday. This week, Morgan Stanley and Cantor Fitzgerald downgraded Twitter to a "sell" rating.

(Read more: Twitter stock will disappoint, pro says)

Cramer puts Twitter in a group of stocks, including Amazon and Netflix, that he likens to modern art because of the fuzzy relationship between their earnings and market valuations.

(Read more: Why Facebook isn't a good platform for recruiters)

Cramer said the most recent downgrade stemmed from concerns over Twitter missing earnings estimates because competitor Facebook offers advertisers a better value.

However, asked which investors care about the string of downgrades against Twitter, Cramer said: "None whatsoever."

Twitter's earnings report is being released Feb. 5.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."



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