How do I know this? Because I keep reading the tweets of people who follow me @JimCramer. They keep hawking Twitter because of a new advertiser or because of the video homes of Periscope, or because people watch sports and tweet.
Or we hear takeover chatter with a number of acquirers mentioned. People who read our bulletins for ActionAlertsPLUS.com know that I think Twitter's stock is worth owning. There are things that can go right. The problem we see, short term, is valuation both on earnings and on takeout. Let's take the latter first.
All the natural acquirers are very sensitive to how their stocks will fare if they make a big acquisition. They fear taking on Twitter's losses and its slowing growth. They are worried, frankly, if Twitter is a business or if it is a fad.
Let's take the case of Facebook (FB) potentially buying Twitter. Many people think Facebook is overvalued. They wonder why Facebook doesn't use its own expensive currency to buy Twitter, which is currently valued at $24 billion -- particularly when they spent $21.8 billion buying WhatsApp last year in a mostly stock and some cash deal.
After all, WhatsApp, which had 450 million users when Facebook ceded a tenth of its market cap to buy it, was losing $138 million that year. Lose one, lose all!