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Thoughts on twitter stock? - Tyler - 03-24-2014 04:31 PM
As you probably know Twitter has been on a roll the last month after opening around $26. It rose to $75 on Thursday before falling to $63 on Friday after it was downgraded by a firm. I'm planning on waiting to see if it falls farther and trying to buy low. Do you think this is a buy, sell, hold stock?
- Janos - 03-24-2014 04:34 PM
Read the article below, that might help in your decision:
http://www.marketwatch.com/story/should-you-sell-twitter-and-buy-blackberry-2013-12-27?link=MW_TD_popular
- Ecommerce - 03-24-2014 04:43 PM
Honestly, I would wait until it drops down further. Social networking is usually a tricky and unstable, in terms of stock.
- Lois Griffin - 03-24-2014 04:44 PM
Twitter is a very speculative play.
They are not currently profitable, and it doesn't appear to me that they really have enough stability and ground work to become profitable.
Investing in twitter would require going in to this blind, as you really can't see what if any potential they have to offer,
At these price levels they look way overvalued. Not the most appealing investment in my book.
If you want to make a speculative play in a company that's not currently profitable.....try something in biotech.
At least that industry has real substance and potential.
I don't like "virtual" companies like social media,
- underexposed... - 03-24-2014 04:45 PM
there is not much trading data to work with but at least the start of a chart is forming
http://stockcharts.com/h-sc/ui?s=TWTR&p=D&yr=0&mn=3&dy=0&id=p01605104996
Ok...traders gave themselves quite a Christmas present ... about an 80% gain in less than a month....on the basis of speculation basically as far as I can see.....so...do you think that profit taking might take hold....I do....(and they say that penny stocks are unreliable {sigh})
It looks to me that the current run is over...when such a thing happens the stock price tends back to its 20 daySMA which is the dotted green line. That makes sense to me as there seems to be a modicum of support at about the $57 level.
This would be a consolidation phase where the stock wanders aimlessly around the 20daySMA until the Bollinger bands get tight...like they were on Dec 7....this would be at least 2 weeks into the new year....at that point you should be able to predict a rebound or continued fall...at this point it is not predictable.
Conclusion:
This is the best I can do on such limited data.
If I held the stock and had done so since it was around $40...I would probably take my profit
If I bought it in the $57-$74 price range I would probably set a stop-loss at $55 and hope for the best
There is no buy signal at this point if you are not in....you won't know if it is a buy for a couple of weeks IMHO
AS you can see...whether you buy/sell/hold or wait depends on what your situation is with respect to the stock....there is not one answer for all situations.
- Donut Tim - 03-24-2014 04:53 PM
The answer by Lois Griffin is perfect.
. .
- JC - 03-24-2014 04:54 PM
Ultra risky move. Earnings per share are negatve 30 cents per share. As you already know as a stock investor, Earnings are Everything. I really believe before you invest in TWTR you need to write down your pros and cons after further research. I know why you wanna buy..to make money. But is it a wise investment. I know your pros and cons will answer that for you. Think about it if social media player Facebook$55 traded at the same price to earnings as Linkedin $216 then Facebook should be a price of $1500 per share. Crazy..right? Exactly and that my friend sums up investing in these social media players. These stocks are indicative of the techs in 1999. There was then no real rhyme or reason why these stocks traded at such high multiples just like there is now with the twtr of the world..no reason. But twtr doesnt have a high multiple..it has NO multiple at all. Again, they are at a pace of losing 30 cnts per share.
Invest with caution. Do your research. Invest wisely.
- ? - 03-24-2014 05:00 PM
do not stare at any share but think about what are you own interest the reason why you want to buy any share and do only invest money you can spend during a longer period and donot needed for outstanding and unexpected payments of any kind, it is also a do it yourself , what also means a lot of reading about any fund
when you already have some funds read for fund all those financial papers in which you can invest by a brokerage account , why would you invest in a fund that is in the same marketsegment as the funds you have already
make a financial statement of earnings and spendings and all the financial products you have and those financial products can have also an overlap, what is the reason to invest in the same at two or more places and have you already read the rules of those products, take the time an read the rules.
- i like turtles - 03-24-2014 05:04 PM
There is a phenomena in stocks that happens at quarter end and especially year end, and that is "window dressing." Mutual funds are only required to list their holdings on certain dates, year end being one. So they can do whatever they want most of the time, but at year end their list of holdings is what everyone sees. How do you think it would look if a growth fund didn't hold some shares of one of the year's most talked about stocks? Not good, as far as some investors are concerned.
So fund managers "window dress" their holdings at year end. They sell the crappy stocks they made a mistake on, and buy over-priced hot stocks like Twitter. The funds that owned Twitter will hang onto it through year end to make sure it shows up on their holdings list. That drives up the price, even offsetting profit taking by street investors, which is also going on.
What this means is that Twitter is priced about 4 years into the future, assuming all goes well. And four years to a social media company is a century to most stocks, they could be hated in 4 years. I see little upside and potential significant downside after January 1.
- Einst38 - 03-24-2014 05:08 PM
I wouldn't touch that stock at this level