Goldman Sachs has decided to apply the ‘sell’ rating to two high-sounding names in the US hi-tech world, seeing a downside margin of up to -20%. The two names are Twitter and Airbnb.
In the case of Twitter, analyst Eric Sheridan has initiated hedging on the stock with a target price set at $ 60, roughly the value around which the stock is trading today. In reality, Sheridan remains positive, in general, on the entire US Internet sector, seeing for the sector a considerable margin of long-term growth and an improvement in operating efficiency. In the case of Twitter, however, the bearish stance is explained by the fact that the valuation is now “stretched” and that the microblogging group has not made significant strides in innovation.
In short, Sheridan is not convinced of the group’s ability to take hold of a wider audience or to capitalize on the greater niche monetization opportunities that the current user base presents. In this sense, the analyst sees Twitter more as an editorial platform than as a real social media platform of the caliber of Facebook and Snap, both titles that he recommends with a buy rating. Another title on which Goldman has launched the sell rating is that of the giant of short-term rentals, Airbnb.
Sheridan also set a target price of $ 132 on the share, a factor that implies a drop of about 20% compared to current levels. The analyst acknowledges that the company is a market leader in the industry in which it operates, with attractive growth prospects and margin expansion opportunities. In fact, annual revenue growth is estimated at + 21% over the next five years, compared to an adjusted profit margin of 32% in 2026. However, at the current assessment, Sheridan believes that the risk-reward ratio is not the title, in a market context, is that of tourism, which is still volatile, and also because of intense competition.