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Twitter stock overpriced despite recent price drop: Barron’s

05
May
2014

(Reuters) – 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 Barrons. Officials at Twitter were not immediately available for comment. The Barrons article said Twitter trades at a big premium to other Internet stocks based on its price/sales ratio, and its user growth is slowing. 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, Barrons said. The number of U.S. users at 57 million appears to be plateauing despite efforts to make Twitter more appealing, Barrons said, warning that Twitters quirky format may make it tough for it to become a mass-market medium like the more user-friendly Facebook. (Reporting by Scott DiSavino;

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