This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Twitter Insider Selling May Crush the Stock: StockTwits

Stocks in this article: TWTR AMZN LNKD FB

There's just not enough reason for insiders not to take profits, say StockTwits investors. Twitter trades at 156 times expected 2015 earnings. That's a higher multiple than other social networks such as LinkedIn (LNKD) and Facebook  (FB).

Shares have been on a downward trajectory since February. They are roughly 47% lower than Twitter's all-time high of $74.73. And Barron's came out with an article over the weekend arguing that shares have further to fall. Barron's main argument is that Twitter is too pricey given its slowing user growth.

To be sure, some investors argue that Twitter might actually go up tomorrow. The high percentage short interest in the name could lead to a squeeze if the anticipated deluge of insider selling doesn't happen. Short-interest on the stock is 14% of float, according to shortsqueeze.com.

$TWTR does not have to sell off u know. Twitter may trade up even after a sell off due to the huge amounts of shorts in the name. -- H&S (@HeadandShoulders) May. 5 at 12:04 PM

But many more investors anticipate that Twitter insiders will shed shares, if for no other reasons than to pay off taxes.

$TWTR insiders wanted to start a squeeze they just don't sell....but I'm sure many will want to take some profits..need to tax man -- RJ (@ryjo) May. 5 at 01:55 PM

>>Read More: Ackman Unveils Fannie and Freddie Strategy

>>Read More: Pfizer's Double Disappointment a Good Buying Opportunity

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs