Investors are 'universally negative' on Twitter and its future (TWTR)

SunTrust

Twitter is a mess.

Over the weekend, reports from Re/code, The New York Times, and Business Insider indicated that several top executives were leaving the company.

CEO Jack Dorsey later tweeted to confirm some of the departures.

In notes to clients on Monday, Wall Street was reacting to the news and acknowledging that as far as it could see nothing good was happening at the company.

Bob Peck at SunTrust, who has a "Buy" rating and a $26 price target on the stock, wrote in a note early Monday, "Investors we speak with are almost universally negative on Twitter and its prospects."

Scott Devitt at Stifel added, "While we may not be the sharpest tools in the shed, we don't see how the departure of the heads of three major business divisions can be viewed as a positive in the middle of an attempted business turnaround." As a result, Devitt cut his rating on the stock to "Hold" from "Buy," reversing an upgrade he had made just a few months ago.

Regarding this quick reversal, Devitt wrote simply, "Sorry."

Business Insider's Rob Price has the full rundown of what the departed execs at Twitter have said so far. Certainly there's more to come on this.

And of course, the elephant in the room is that running Twitter isn't Dorsey's only job — he is also the CEO of the publicly traded payments company Square.

In premarket trade on Monday, shares of Twitter were down 4.5%. The stock closed at $17.84 on Friday. Over the past year shares of Twitter are down by over 50%.

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