Twitter shares to drop nearly 30% because expectations are too high: Nomura Instinet

Twitter’s stunning rally this year is due for a big pullback, according to Nomura Instinet. The firm initiated coverage on the social media company’s shares with a reduce rating, predicting it will report earnings below expectations next year. Twitter shares are down 2 percent Wednesday. The company’s shares are up 82.2 percent so far this year through Tuesday versus the S&P 500’s 4.5 percent gain. Kelley started his price target for Twitter’s stock at $31, representing 29 percent downside to Tuesday’s close.

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Spotlight

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