Philip Pearlman, an avid trader and stock market analyst has concluded that it might be that time. In a recent article posted on Yahoo Pearlman states that its original value was at $50 to begin December but it was able to recover and was up 40%. But as Pearlman says, “nothing lasts forever.” The stock was down 5% the morning of December 27.
So how could the stock come up so quickly and then now it is finding its way back down?
Pearlman gives three fundamental reasons.
First, Twitter may be able to develop searches that are tailored to their users and allow these searches to be monetized bringing in good revenue for the social networking site. Twitter would be using tools similar to Google searches and would be able to place relevant ads right next to a user’s search. This has Pearlman excited about the future for Twitter and says that Twitter will have “kinds of value few yet foresee.”
Second, hedge funds have successfully, to what Pearlman states, “gorged” on Twitter shares. With the end of the year approaching there has been a strong play at chase performance and hedge funds “were going to pile” in the low period.
Third, Twitter stock has looked impressive at times holding at level 40 and sometimes rising to level 50. Because of the increase though the stock has “stretched” a bit which has caused a dip. Pearlman calls this a “parabolic” shift in nature.
If you have paid attention to the big move that has happened in December for Twitter Pearlman explains now might be a good time to lighten up on the stock. The hedge fund and the chase is now considered to be out of the market mostly. Still be encouraged in Twitter however. It appears that it has longevity and with potential moves towards search engine reconstruction it may be a winner for 2014 once again.
from Mark Tuminello http://marktuminellofinance.com/time-to-sell-twitter-stock/ – latest post by Mark Tuminello