Twitter Had a Lousy Year. Is now the Time to Buy?

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By Ben Myers

Twitter on Ipad
Woman Using Twitter on an iPad

Twitter Inc (NYSE:TWTR) has been one of the most underperforming social media stocks for the year 2014. Analysts on the street have been complaining about how the company has been unable to monetize its mobile platform and how advertisers are seen using other social media platforms like Facebook and LinkedIn as better product placement tools. Many social media watchers believe that the company provides a unique opportunity for users to create their own social media journals which would provide users and followers with a unique insight into lives and places.

Social media many believe should be used a “self-laboratory” by users to innovate, indulge, express and provide other followers an insight into something which is out of the ordinary.  Though, in its 8 years of existence, the company has mostly been use as a tool for breaking news, bickering and fights which many believe hasn’t been able to truly utilize the power provided to users through the social media platform. Social media observers believe that platforms like Twitter should be used to create a personal zeitgeist that would be used to reference by future generations.

When looking at the daily charts for Twitter Inc (NYSE:TWTR), the stock has been in  a momentous downtrend and has been seen forming lower lows and lower highs which is indicative of the strong bearish momentum. The stock for the company currently trades below all important daily moving averages.  The momentum indicators and the relative strength index continue to trend lower and show no signs of bullish momentum which is a cause for concern in the near term. It is imperative to state that the moving averages have formed a death cross which is a bearish sign.

Actionable Insight:

Short Twitter Inc (NYSE:TWTR) at current levels for an intermediate target at $34.80 with a stop loss above $39.20

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