The Noisy Twitter Bird

Twitter has been making a lot of noise in the news since last week. The media caught wind that Twitter was entertaining buyout offers. This is not the first time we have heard of a possible Twitter acquisition. Last year, it was reported that Twitter buyout rumors at that time were actually fake. The stock price jumped back then too.

Nevertheless, I am bullish Twitter because I use it. I know the power of Twitter. It would not be possible to democratize finance without the birth and widespread use of Twitter in our business. It can been a better compliant tool than FINRA could’ve ever hoped. Too bad they don’t see that way and don’t know how to use it. And that is Twitter’s exact problem to begin with. Regular folks just don’t know how to use. I think it is largely because not enough employees use Twitter themselves so how can ever fully appreciate the inherent power that is Twitter? Let alone, teach others like them who don’t understand how to use it.

Twitter has a usability issue not a value issue. And until that wrong is righted, the stock price will continue to disappoint.

TWITTER DAILY CHART TWITTER WEEKLY CHART

Twitter, therefore, remains a very long-term investment. The stock has only been trading for 4 years so trying to determine where price is headed is really anyone’s guess. However, the charts are pointing to another move to the downside. And such a move targets the $15.70 lows or the $13.70 lows, depending on your timeframe. A close above $25 invalidates the bearish sentiment.

So the question you have to ask yourself is whether early investors are willing to hold stock at this current $20.00 price level? Earlier investors have been selling $TWTR stock as recently as 10 months ago. Ask yourself another question – the more important question: What kind of investor are you? That will dictate what you do here.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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