Shares of Twitter surged 53 percent in December as investors disregarded a lukewarm welcome from Wall Street after an initial public offering last year. But 2014 has not been good to the stock, which has fallen more than 3 percent so far this year.
"Twitter remains one of the few key plays on the social internet, but at the current stock price we prefer Facebook and Google," Squali wrote. He lowered his rating on Twitter to "Sell" from "Hold" Wednesday.
The analyst kept a $32 price target.
On Monday Morgan Stanley's Scott Devitt cut the company's rating to "Underweight" from "Equal-Weight," saying that advertisers are more likely to spend their ad dollars on Twitter's larger rivals first. And on Dec. 27 Macquarie Capital's Ben Schachter cut his rating to "Underperform" from "Neutral" due to the major run-up in the stock.
A representative for Twitter could not be immediately reached for comment.