Twitter is “toast” as a company and the stock is not even worth $10, according to a research note published Tuesday, following the departure of another top executive at the social media service.
The microblogging platform’s chief technology officer, Adam Messinger, tweeted that he would leave the company and “take some time off”, while Josh McFarland, vice president of product at Twitter, also said he was exiting the company. Both executives announced their departure on Tuesday.
Meanwhile, last month, Adam Bain stepped down as chief operating officer last month to be replaced by chief financial officer Anthony Noto, who has yet to be replaced. Twitter has also lost leaders from business development, media and commerce, media partnerships, human resources, and engineering this year.
The departures prompted Trip Chowdhry, the managing director of equity research at Global Equities Research, and a noted “uber-bear” on tech stocks, to issue a note on Tuesday claiming Twitter is “toast” and “not even a $10 stock”.
“Many investors were foolishly building (an) investment thesis based on complete stupidity,” Chowdhry wrote.
Twitter’s share price closed at $17.92 on Tuesday. A $10 price tag would represent a more than 44 percent decline in the U.S. technology company’s shares on Tuesday’s closing price. It’s not the first time that Chowdhry has said that Twitter could fall to $10. In October, the analyst said that next year, the fall is likely to take place.
The analyst said that Twitter’s data quality is “horrible”. Chowdhry said that many pollsters used Twitter data to predict a Hillary Clinton win in the U.S. election but the fact that Donald Trump won shows that data quality is poor. One reason for this is too many fake users on the platform, Chowdhry claims.