Here's Why Wells Fargo Slashed Twitter's Price Target By 40%

Wells Fargo analyst Brian Fitzgerald lowered the firm's price target on Twitter Inc TWTR to $42 from $70 and reiterated an Equal Weight rating on the shares.
The price target implies an upside of 13.57%.
The analyst notes that Twitter reported roughly in-line Q4 results.
Related Content: See Why Twitter Stock Shines; Key Takeaways From Q4 Results
However, Twitter's usage underperformed Street expectations, and guidance was mixed-adjusting for the sale/deprecation of the MoPub businesses. Management's revenue outlook bracketed Street consensus, though Op Income guide came in well below pre-print consensus.
Management remains committed to 2023 targets for revenue of $7.5 billion-plus and mDAU of 315 million-plus in Q4 2023-which Fitzgerald views as possible but ambitious, particularly on usage, as 315 million mDAU would require a significant acceleration to 12 million average quarterly net add pace versus 5 million over the past six quarters.
Price Action: TWTR shares traded lower by 0.57% at $36.77 in the premarket on the last check Tuesday.