The future of TikTok remains unknown. TikTok along ,with other popular Chinese based apps like WeChat, have come under scrutiny for its data sharing and alleged lack of data privacy. President Trump has ordered TikTok to either close its U.S. division or be acquired by another company.
Microsoft seems to have gained the most attraction to the app due to its user data potential while adding yet another platform to attract more consumers to its constantly expanding software capabilities. Despite Microsoft seeming to be the company that will buy Tiktok, Twitter has recently sparked an interest into the social media app as well.
Twitter over the years has gained attraction among users through its live streaming capabilities combined with its real time newsfeeds. Twitter has also more recently gained the spotlight through its newly enforced censorship policy regarding misinformation, which has been a catalyst for social media platforms to combat the spread of fake news. These defining attributes are what gives Twitter a leg-up on Microsoft and allows Twitter to easily integrate TikTok into its platform.
According to our chart, $TWTR has had some similarity to $MSFT with its downtrends and corrections from the major March dip. On the contrary, $TWTR has been known to be the “underperformer” among other social media stocks. This is due to $TWTR history of having weak earnings its inability to break its lowest correction lows, and the never-ending political atmosphere that surrounds it. Based on the RSI and H, it is apparent that $TWTR can either be weak and volatile or steady with few and far corrections in between.
Overall, we believe $TWTR in the long-term investing won’t be a huge gainer but steady in terms of price gains with occasional lengthy troths. As for the short-term, we think that $TWTR performs its best under distress especially with the pandemic combined with its political affiliations. Therefore, gains can certainly be made in the short-term especially with $TWTR pattern of gaining before correcting itself.