Schaeffer's Trading Floor Blog

Analyst Downgrades: Amazon.com, Inc., Twitter Inc, and LinkedIn Corp

Analysts downwardly revised their ratings on AMZN, TWTR, and LNKD

by 4/25/2014 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN), microblogging platform Twitter Inc (NYSE:TWTR), and professional networking site LinkedIn Corp (NYSE:LNKD). Here's a quick roundup of today's bearish brokerage notes.

  • More than a dozen brokerage firms downwardly adjusted their positions on AMZN, following last night's poorly received first-quarter earnings report. This includes BofA-Merrill Lynch and J.P. Morgan Securities, which each cut their price targets by $15 to $420 and $350, respectively. Elsewhere, in the options pits, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.83 ranks just 1 percentage point from a 12-month low, indicating short-term speculators have rarely been more call-heavy toward AMZN than they are now. Meanwhile, on the charts, Amazon.com, Inc. -- which is down 15.5% year-to-date to trade at $337.15 -- is poised to extend its technical woes through today's session.

  • Wedbush lowered its price target on TWTR to $50 from $58 this morning, just three sessions before the company's post-close earnings release next Tuesday, April 29. On the charts, Twitter Inc is deep in the red, shedding 29.6% so far this year to trade at $44.82. Meanwhile, investors have upped the bearish ante on the stock, with short interest climbing 12.8% during the last two reporting periods. Now, these bearish bets account for 11.6% of TWTR's available float, representing 4.3 days' worth of pent-up buying demand, at the shares' average daily volume.

  • Wedbush also weighed in on LNKD this morning, dropping its price target to $185 from $225. Like TWTR, LinkedIn Corp has been a disappointment on the charts so far in 2014, losing nearly 21% of its value to trade at $171.59. Nevertheless, the stock's SOIR of 0.46 ranks lower than 99% of similar readings from the past year, indicating call open interest (relative to put open interest) is nearing annual-high levels among options expiring within the next three months. The company will report earnings after the close next Thursday, May 1.

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