Twitter LogoUPDATE, 2:03 PM: It turns out plenty of investors listened to Macquarie Captial analyst Ben Schachter, who downgraded Twitter‘s stock this morning. Shares finished the Friday session down a whopping 13% to $63.75. They had started the day at $73.71 after hitting an all-time high Thursday. Today’s losses push the company’s market cap in one day from $41.6B to $34.7B.

PREVIOUS, 8:42 AM: Twitter‘s market value increased by $11 billion just seconds after its stock began trading on the New York Stock Exchange on November 7, when the IPO launched at $26 a share. The social media darling has almost tripled that opening price and hasn’t really looked back — until today. Macquarie Captial analyst Ben Schachter lowered his rating on the stock from “neutral” to “underperform”, cooling the share price by more than 6% so far in morning trading. According to Bloomberg, the downgrade isn’t because Schachter isn’t a believer — he just believes “nothing has changed over the last 15 days to justify the rise in valuation.” He had initiated coverage December 11 with a $46 price target, and Twitter shares ended yesterday at almost $75 a pop. Bloomberg says that valued the company at $41.6 billion — bigger than Big Media heavyweights like Time Warner Cable and Viacom. Investors still put a higher value on new media companies like Yahoo and Facebook, and for Twitter the Street is bullish on mobile ad sales, a major driver of the stock to date for a company that has yet to turn a profit. Schachter isn’t the first analyst to pump the breaks on Twitter: Pivotal Research Group’s Brian Wieser downgrade the company to “sell” from “buy” on Day 1 of the IPO based on the 75%+ jump in the share price. “Twitter is simply too expensive” after it passed the high 30s, he said.

Related: Is Twitter More Valuable Than Dish Network, SiriusXM, Or Netflix?

James Gray
12 months
1. Morons sharing moron thoughts 2. ??? 3. Profit
12 months
They make money. Just not profitable... yet. b/c they spend so much on R&D. Mobile advertising will...
12 months
Logo with birds equals money