Twitter (TWTR) is such a hot commodity that news outlets produce quotes from it every single day. The most popular candidate is the President of the United States, Donald Trump, who tweets often multiple times in a single day. Each tweet getting quoted by CNBC and being deeply debated for the content that he has given. Recently, even Elon Musk made the Twitter headlines as he mentioned that his company Tesla (TSLA) has the investors to get bought out at $420 per share. This caused huge changes in the stock price and even had the stock ticker to be pulled from the market while people digested the news. It has also caused the SEC and many lawsuits to come to Mr. Elon Musk.
Who know that such a small one sentence tweet can cause so much trouble? Who also knew that you can cause such an impact? You even see Twitter becoming the top broadcast to the World Cup with over 115 billion impressions.
In June, Twitter hit a stock price high at $46.80. Goldman Sachs has a target price of $52 and it got nearly close. However, a couple missteps and the price of Twitter has fallen over 20% recently reaching a low of $31 but slowly creeping back just almost at $33 as of today.
What happened to the stock price?
First, Twitter had a huge announcement about fake accounts. The amount of fake accounts was much greater than expected.
Second, Facebook had the largest single-day decline on its stock price after second quarter earnings. Twitter took a lot of impact being part of the same sector.
However, since these two events, the stock price has steadily and slowly gone up. This proves that the uptrend is in place. It also shows we have a safety net that the stock price will stay steady instead of continuing to drop.
Now, let’s do some research on why this is a super stock:
- Citron predict a $52 price target at end of year
- Their research shows that a similar company in China was recently valued at $75 billion. Twitter has a current market cap at $25 billion. With a current valuation, Twitter should be at $90 per share.
- Goldman Sachs predicts a $48 price target
I believe Twitter is a great buy at prices below $34. There’s plenty of upside for this debt free company. It is already priced for worse-case scenario.