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TWTR (Twitter) sees a huge chunk of the position sold off after Dorsey announces he's leaving. With no other indication or news for Twitter it seems it's either that that provoked the selling or ARK saw valuations they preferred against Twitter and decided to sell to free up cash to go make purchases.

From my seat TWTR looks like it could surprise during earnings. For a few different reasons. But here's just one simple one that keeps catching my eye... Twitter now always shows one ad above the fold in the feed...

Tweet from twitter.com showing how an ad now always appears above-the-fold in the feed.

Tweet from twitter.com showing how an ad now always appears above-the-fold in the feed.

Maybe I missed it before, but I don't think so. Ads used to be far more sporadic. The constant above the fold one is pervasive, which could lead to more impressions and therefore more ad revenue.

Back to the mid-range of it's historical price-to-sales, Twitter isn't necessarily cheap, but it's not expensive.

TWTR (Twitter) historical price-to-sales and historical revenue-per-share chart.

TWTR (Twitter) historical price-to-sales and historical revenue-per-share chart.

Twitter is no longer priced for perfection. If the company surprises to the upside during earnings, that valuation could now tolerate a repricing to the upside.


In fact, many social media stocks are looking much better. PINS is well off it's valuation highs and back to where it was when it started trading in 2019 despite having significantly better metrics, including positive and rising free cash flow.

PINS (Pinterest) historical price-to-sales and historical revenue-per-share chart.

PINS (Pinterest) historical price-to-sales and historical revenue-per-share chart.


ARK owns 1.6% of TWTR. It's still the 18th largest holding across the portfolio.