NEW YORK (AP) -- Another analyst has joined the chorus of those who feel that Twitter's stock is too expensive, even as they note the social media service's popularity.
Cowen analyst John Blackledge started coverage of Twitter's stock, which went public in early November, with an "Underperform" rating and a target price of $32. In the past two weeks, at least three analysts have downgraded Twitter to "Sell" or similar ratings, saying it is priced too high.
Twitter's shares are still trading at more than double their $26 initial offering price. The stock soared 53 percent in December, but has declined 10 percent this month as a growing number of analysts have started to express concerns about its value of its shares. Twitter's shares fell $2.24, or 3.8 percent, to $57.05 in afternoon trading Thursday.
Blackledge said the "key investment controversy" for Twitter centers on its ability to grow revenue quickly. He added that Twitter's user growth is slowing.
Twitter had no comment. The company plans to report its first earnings as a public company on Feb. 5.