Goldman Downgrades Twitter On Q3 Miss, Cuts Target To $34 From $52

Goldman Sachs analyst Heath Terry downgraded Twitter (TWTR) to Neutral from Buy with a price target of $34, down from $52.

The stock in midday trading is down 19.5%, or $7.56, to $31.28.

Twitter reported Q3 results this morning with revenue and profitability well below consensus expectations, primarily driven by "significant deceleration" in its U.S. advertising business, Terry tells investors in a post-earnings research note.

The analyst, who lowered his estimates on Twitter's advertising issues and negative flow-through to adjusted EBITDA, continues to see "significant and growing" value in the platform. Nonetheless, the lack of visibility into the remediation of the advertising platform, uncertainty around its ability to drive broader advertiser demand, and the risk of further multiple compression warrants a downgrade to Neutral, contends Terry.