May 4 U.S. micro-blogging company Twitter Inc
still looks overpriced even after a 47 percent drop
from its late December high of $74, according to an article in
the May 5 edition of Barron's.
Officials at Twitter were not immediately available for
The Barron's article said Twitter trades at a "big premium"
to other Internet stocks based on its price/sales ratio, and its
user growth is slowing.
The company "appears to be a long way from profitability,
based on conservative accounting that properly treats as an
expense its massive stock-based compensation to employees," the
Shares of Twitter, which ended on Friday at $39.02, could
drop toward $30, which would still leave it trading at a premium
to Facebook Inc on a price/sales ratio, Barron's said.
The number of U.S. users at 57 million appears to be
plateauing despite efforts to make Twitter more appealing,
Barron's said, warning that "Twitter's quirky format may make it
tough for it to become a mass-market medium like the more
(Reporting by Scott DiSavino; Editing by Paul Simao)