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Pro Analysis

RBC's Mahaney: Twitter to drop 25% on weak advertising interest

Twitter
Jaap Arriens | NurPhoto | Getty Images

RBC's Mark Mahaney, one of the most followed tech analysts on Wall Street, downgraded shares of Twitter to underperform from market perform late Thursday, predicting a 25 percent drop in the stock to $14 on weak interest from advertisers.

According to a recent survey among a group of advertising professionals in a range of marketing roles, 30 percent of respondents did not allocate any spending budgets for Twitter, a 5 percent increase from the levels in February, Mahaney wrote.

Similarly, only 24 percent of those surveyed believed their return on investment improved because of campaigns held on the social media platform, according to RBC.