NEW YORK (TheStreet) -- Rumors are surfacing that Twitter (TWTR) is in talks to acquire Shots, the social media application known for "selfie" pictures. The app has a small user base of roughly three million people and is popular in the 13- to 18-year-old group.
This report comes just hours after CFO Anthony Noto erroneously sent out a tweet that seemed to be meant for a direct message, out of the public eye. As a result, shares of Twitter closed lower by 1% on Tuesday.
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Steve Grasso, director of institutional sales at Stuart Frankel, said Noto may have sent the tweet on purpose to "test the waters" and see how investors would react. The company needs to find a way to engage its users, he said.
It's clear that Twitter needs to make a move in order to boost its user growth, said Tim Seymour, managing partner of Triogem Asset Management. But Twitter is still relatively small and won't be able to make some of the big acquisitions that some investors seek.
If shares of Twitter decline to $36, investors should "buy it with both hands," according to Brian Kelly, founder of Brian Kelly Capital. The company needs to figure out a way to monetize its core platform.
Hewlett-Packard (HPQ) is another tech stock in the news. Shares are down 1% in after-hours trading following the company's earnings release. Management said the company will split into two enterprises to create shareholder value.
The split will take a while to go into effect, said Karen Finerman, president of Metropolitan Capital Advisors. Investors should wait a pullback before getting long. The stock has rallied significantly since its October lows and Grasso said to take profits. Seymour called HP a "hold" at current levels.