Evercore ISI's analysts have just changed Twitter's status, advising investors to sell the company's shares.
Evercore's analyst Ken Sena said that he sees "more risk than reward" in holding on to Twitter's (NYSE:TWTR) shares at the moment.
"As broadcasting capabilities permeate competing social platforms that are winning influence with Twitter users and advertisers, as evidenced by traffic patterns and management commentary citing its ad pricing premium, we see more risk than reward, particularly ahead of Snapchat’s anticipated monetization ramp this fall.”
He estimated the stock's price to reach $17. Right now, Twitter's shares are down to $19.55.
Sena believes that Twitter will be having a hard time keeping up with the other social media competitors.
"Compared to Twitter, similarly scaled social media competitors are exhibiting accelerating (Snapchat) or steady (Instagram) unique visitor growth," he said.