By Benjamin Pimentel, MarketWatch
Twitter Inc. shares were in the red Friday after the social
network got a sell rating from S&P Capital and options trading
began on the New York Stock Exchange.
Twitter (TWTR) was recently trading down 2% to $43.78 as options
trading began on the stock on the New York Stock Exchange. Volume
is expected to be high and the trading could play into investor
demand to short the stock.
Twitter on Friday was also given a sell rating and a price
target of $30 by S&P Capital IQ.
In initiating coverage on the microblogging site's stock,
S&P Capital analyst Scott Kessler said Twitter has "substantial
revenue growth potential, given what we see as a notable
multinational brand and user base, emerging monetization efforts,
and strength in mobile." But he said the San Francisco-based social
network "has been spending to support expansion, leading to
considerable losses."
Twitter went public last week when Twitter shares opened at
$45.10 after pricing at $26. The stock was on track to end its
first full week of trading with a gain of more than 5%.
Other social media stocks were up. Facebook (FB) rose nearly 1%,
while LinkedIn (LNKD) gained 5% and Yelp Inc.(YELP) was ahead by
4%.
The tech sector also got a lift from shares of Agilent
Technologies (A), which were up more than 9% after the company
reported better-than-expected profit.
On the downside, shares of Hewlett-Packard (HPQ) and Apple Inc.
(AAPL) were each down a fraction.
The Nasdaq Composite Index (RIXF) was up 0.2% at 3,980. The
Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia
Semiconductor Index (SOX) were each up a fraction.
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