Twitter's frenzied public debut sent the company's shares up by 73 percent, but analysts have warned of a tech bubble burst as the current share price of a company that hasn't seen profit is unreal.
Analysts, who talked to CNN, said that the valuation of 24.4 billion dollars was far too high for Twitter that is losing money with some warning of a huge risk to early investors.
The microblogging site in its IPO filing revealed that it has not turned a profit for at least the last three years, and losses accelerated in the first nine months of 2013.
Pivotal Research Group senior analyst Brian Wieser downgraded his rating on the Twitter stock to 'sell' from 'buy' in less than one hour of going into trade and said that 45 dollars per share would be justified only if Twitter could log more than 6 billion dollars in annual sales by 2018.
Another analyst reiterated that Twitter's unreal valuation is disconnected from any logical calculation and reflects a huge downside risk for investors if Twitter does not meet expectations at every quarterly earnings release from now on.
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