Friday, April 25, 2014

Everybody Hates Twitter. That's Why I Bought It

I waited. And waited. Wanted to buy Twitter (TWTR) for a long time. But price was too high for my taste. Now it's close to the IPO price. So I decided to open this position. Another reason: nobody likes the company. Cramer plain hates it.
I think this company can make big money for shareholders. They just started monetizing and are close to break even. Might be something like Facebook (FB), which increases earnings despite all forecasts.
Twitter reports next Tuesday. Nobody knows what is in the report and how market would react. So I started position today, and if stock drops after earnings, well, that would be a good reason to increase position.
It's hard for me to understand current internet sell-off. The biggest risk right now is war between Russia and Ukraine. Formally speaking, war is going on, it's just not full scale. But what does it have to do with the internet? Whatever any internet company is earning in these two countries can't be seen in the microscope. Industrials and energy are more at risk here.
Disclosure: I am long FB, TWTR.
Additional disclosure: Positions can change any time.

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