Twitter Stock Gives a Tremendous Tweet

Twitter Stock Gives
a Tremendous Tweet
By
www.ProfitableInvestingTips.com

Twitter seems to have learned from the
Facebook IPO flop and priced its stock
reasonably for its initial public offering.
http://www.profitableinvestingtips.com/investingtips/twitter-stock-gives-a-tremendous-tweet

The stock was priced at $26 for the IPO and
opened at $46.

By mid-day it went up and down and settled
in the $45 range.

So, as twitter stock gives a tremendous
tweet, we wonder just how valuable is the
company.

After all it has been losing money.

With a market valuation of over $18 billion
that gives a value of nearly $80 per user.

But the question as twitter stock gives a
tremendous tweet is if the company will
make money and if the stock will go higher or
lose ground.

Social Media
Companies and
Profits

Social media is very popular but the rap on
the companies that provide these services is
that they do not necessarily make money.

That was the issue with Facebook which
went high and then tanked on the first day.

Many criticized the company for setting its
IPO price too high but people still bought it on
the promise of growth.

Then, when the stock fell, everyone rushed
for the exit as market sentiment went against
the stock.

Fundamental analysis of Twitter tells us that
what they have going for them is a popular
way to communicate via social media.

They do not own large tracts of
land, factories, or parts of other companies.

Thus they have little or no margin of safety
and their price is solely based on the
expectation of growth and the hope that
when they grow they find ways to make
money as well.

Is a Social Media
Platform a Good
Investment?

Before Facebook went public we asked if
Facebook would be a good investment.

The question is how do you monetize social
media?

Basically you put ads on the sites.

However, it is much easier to put ads on
computer screens than on hand held
devices.

The companies that make money in this
realm will need to keep attracting large
followings for their services and find ways to
put ads in the face of the user.

When this happens folks will pay the likes of
Twitter for the use of their platform for
advertising.

While Twitter stocks gives a tremendous
tweet today on opening it will do better over
the years as it grows and gets a handle of
how to monetize itself.

Investing in Growth
Stocks

Many investors invest solely in growth.

When a company settles into a solid position
in its market niche but ceases to growth
these folks leave.

These investors have a good sense of both
fundamentals and evolving market
sentiment.

As it opens and Twitter gives a tremendous
tweet the current fundamentals are weak.

If one believes that the company can grow
and increase revenue the intrinsic value of
the company may well be more than where it
is trading at today.

Belief is the key.

Market sentiment is based on what investors
believe about the future.

So long as investors believe that there is
great growth potential in Twitter they will
support the stock price and even bid it up.

But, once investors believe that any growth
potential is exhausted they will sell in droves
and send the Twitter stock price plummeting.

If your goal is to make money in growth
stocks like Twitter you need to know the
fundamentals and watch the market closely
as a spooked market can fall rapidly.

Twitter Stock Gives a Tremendous Tweet

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Twitter Stock Gives a Tremendous Tweet