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.