One analyst is sticking with his pessimistic view on Twitter, saying a potential sale does not change basic concerns about the company.
This is a case of merger and acquisition activity "trumping fundamentals," Mark Mahaney, analyst at RBC Capital Markets, said in an interview with CNBC's "Halftime Report."
"If there's any lesson from Twitter from the last two to three years is that the data to an advertiser has not been that helpful, has not been that useful and that's why advertisers have been leaving Twitter and that's why the revenue growth is decelerating," Mahaney said Friday. He laughed, admitting that the timing of RBC's downgrade "could not have been worse" in terms of the price action.
RBC downgraded Twitter to "underperform" on Thursday and cut its price target to $14 from $17, based on the firm's "belief that Twitter's value proposition to advertisers could be waning, based on [its] recent advertiser survey data."