06Feb11:19 amEST

Still Bullish on Twitter for the Long Run

This will be a topic of analysis I will flesh out in more depth soon for VIP Members when I give my regular long-term portfolio update. However, TWTR remains a long-term holding of mine and has since the $16 handle a few years back. 

While I recognize the last few quarters have been a long slog sideways, at best, for bulls and new especially for new investors, the reality is that the long-term chart, updated below on the monthly timeframe, points to a sound consolidation. On the bottom pane of the monthly, note the absence of heavy volume during the basing period, often implying a relatively orderly pause and giving the slight edge to bulls, especially considering the prior explosive rally where the stock roughly tripled during late-2017 through 2018. 

Thus, the consolidation ought not to be too much of a surprise, all things considered. 

With its most recent earnings rally, TWTR is back in play to unleash a new leg higher. I view $47/$48 as the major hurdle above to clear. But getting back into the $40s soon would be a good start for bulls. 

Overall, the Twitter platform is still a dominant winner in terms of breaking news (look no further than how quickly the Kobe Bryant news spread, even the misinformation, a few weekends back), high profile people across all industries voicing opinions, promoting products, etc.. Even with management's various miscues, the ultimate brand strength of Twitter and lack of a meaningful competitor on the horizon for this specific type of social medium makes for a winning long-term investment. 

Locked Horns Stock Market Recap 02/06/20 ...

 
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