Tweet, Tweet! All Aboard the Twitter Bandwagon!

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Twitter (NYSE:TWTR) stock slid more than 7 percent in early trading on Friday after getting hit with the downgrade stick from analyst Ben Schachter at Macquarie. In a note seen by Business Insider, Schachter said that while Twitter’s business looks good in the long term, there is little to no way to justify the company’s current valuation and downgraded the stock from Market Perform to Underperform.

Twitter closed Thursday up nearly 182 percent from its initial public offering price of $26 at $73.31 per share, giving the social media platform a valuation of about $40 billion. For some context, that’s about the same valuation as big-box retailer Target (NYSE:TGT), which, unlike Twitter, actually has positive earnings.

Twitter reported a net loss for the nine months ended September 30 of $133.9 million, up from $70.7 million in the same period last year, and the trend isn’t expected to change anytime soon. Even Goldman Sachs analyst Heath Terry, who initiated coverage of Twitter with a Buy, forecast negative earnings for 2014. Goldman Sachs served as lead underwriter for Twitter’s IPO.

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