However, the company announced a data-mining partnership today with International Business Machine (IBM) - Get International Business Machines (IBM) Report , which will bring Twitter's data to some of IBM's software products and services.
"I think it's a positive, more so for Twitter," said Stephanie Link, the co-manager of the Action Alerts PLUS portfolio, which has Twitter as a holding.
While IBM certainly benefits, she said data analytics only makes up a small portion of the company's overall business. Twitter, on the other hand, is so much smaller that the boost it will receive in revenue will be more significant.
Plus, this partnership could lead to other possibilities down the road, Link said.
The stock has been hit hard this week because "people are very much concerned about the business model and end-market growth," she explained. But now shares seem to be "washed out" and are probably at good levels for investors to get long.
This is a different story than Facebook (FB) - Get Facebook, Inc. Class A Report , another AAP holding, which dropped by 6.1% following earnings. No one has an issue with the company's business model, they have a problem with the 50% to 70% increase in spending, she said. For now, shares of Facebook are likely to stagnate before eventually moving higher.
As it stands, Twitter is a "show me" stock, Link concluded, meaning that it will not get the benefit of the doubt from Wall Street unless it explains, in a convincing manner, how the company will grow faster.
Twitter's next chance to prove itself to investors comes at its analyst day scheduled for Nov. 12.
-- Written by Bret Kenwell