This Day On The Street
Continue to site
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

Why Twitter Has More Upside Than Facebook

Updated from 9:19 a.m. to include additional RSI information on Facebook and LinkedIn.

NEW YORK (TheStreet) -- If you've been following the markets, you know that tech stocks have dropped sharply in recent weeks. Whether it's concerns over revenue growth, a lack of users, or the possibility of recession, tech stocks have taken a beating. 

High momentum names, which include social media stocks, have been thrashed since the early part of March as portfolio managers simply don't want to own these stocks, even if their earnings and outlooks are good. But there may be hope for some of these companies, particularly ones that have been beaten up drastically, as investors begin to reassess value to determine whether it's worthwhile owning some of these equities, albeit at much lower prices.

Of the social media names that have fallen sharply, the one that sticks out to me is Twitter (TWTR - Get Report). The stock closed Monday at $33.94; it traded near $75 in December 2013. Since then, Wall Street has bludgeoned the stock on two earnings reports, not because of missed earnings but because of slower-than-expected user growth and the concern that Twitter is a niche company.

Given this, and a slew of other facts, Twitter may be a good buy at these levels, particularly if you think Twitter's platform isn't going anywhere anytime soon, and the company's efforts to not only increase user growth but engagement as well will pay off in a big way.

Here are several reasons why Twitter shares may be a good buy at these levels.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FB $79.34 0.00%
TWTR $36.51 0.00%
AAPL $129.62 0.00%
GOOG $532.32 0.00%
TSLA $247.46 0.00%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs