Twitter Spikes 20% After David Faber Reports New Buyout Chatter
Twitter Inc (NASDAQ: TWTR)'s investors woke up on Friday to find the stock trading lower by more than 3 percent following a concerning report from RBC Capital Markets.
The analysts downgraded Twitter to Underperform from Sector Perform and slashed its price target to $14 from a previous $17.
Of note, Mahaney oversaw a survey involving 1,100 advertising professionals, including agency representatives, marketers, marketing consultants and media representatives.
Mahaney noted that the survey represents "the weakest result we have seen and the first time we have seen a negative skew towards spending."
Related Link: Every Twitter Takeover Rumor of 2016
Investors quickly brushed aside Mahaney's report after CNBC's David Faber reported Twitter has "received expressions of interest from several technology companies and may receive a formal bid shortly."
Shares of Twitter were trading higher by more than 20 percent to $21.70 following Faber's report.
Of note, this is far from the first time Twitter's name has been mentioned as a possible takeover candidate from reputable sources.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.