Bernstein analyst Mark Shmulik initiated coverage of Twitter with an Underperform rating and $27 price target as part of a broader initiation of the U.S. Internet sector with a generally positive outlook. Shmulik says that although Twitter is his micro-blogging platform of choice, it remains a niche product with the smallest U.S. user base of the peer group. The analyst adds that recent prioritization on platform health may prove beneficial over the long run, however mindshare spent away from ad product development has left Twitter worst among its peer group, with fewer ad targeting options, lack of self-serve, and limited ad product/formats available for the long-tail of ad buyers.