Twitter, Inc (TWTR)

He is cautious about this. Although the number of users is rising, he thinks they need to see a better rate of growth to monetize the value. He sees the long term growth being somewhat constrained.

Don’t hold on. Have to wait after a drop like this. If volume starts subsiding, could buy there. Lots of buying around $44, so this is not good at all. Might be support around $31. Way too early to get in.

Twitter has 336 million active users after purging a large portion of fake accounts and bots. Some investors were suspicious of this, but he sees this is an opportunity. Twitter has a very long runway--he's very bullish.

He thinks the market is undervaluing their growth rate--they have grown past revenues beyond market estimates. By 2020, revenues should exceed $4 billion instead of $3.6 billion. (Analysts' price target: $32.87)

It's had a tough time and only recently has moved higher. He has bought and sold it. Facebook is a better buy. Take profits. Expected 30% growth rate, but its forward PE is rich. Put a stop loss or wait. Hard to say if this will be bought out.

It's had a tough time and only recently has moved higher. He has bought and sold it. Facebook is a better buy. Take profits. Expected 30% growth rate, but its forward PE is rich. Put a stop loss or wait. Hard to say if this will be bought out.

The social media sector, outside of Facebook, tends to have fewer levers to pull when things don’t work. Not his cup of tea at this point because it has a 40 times PE ratio after doubling in the last year. He would move part of the position into something else after the great gains. It is fully valued.

It's performed well over the past year as more active users have come on. Twitter makes a bit of money. Operates at 25x EBITDA. The online advertising space is incredibly competitive so he'd rather own Google or Facebook. Don't own this for the long-term.

After the Facebook blow up this is interesting. He is still struggling with monetization on social platforms. It is a PE of 65. You are betting on a lot of things working that have not worked. They even have Trump as their bill board. Twitter is better than Facebook, though. Twitter will stick, whereas Facebook may not.

Feels this is now entering FANG territory. This is what Trump uses to rule the world. It reaches millions and millions of people. It’s put on lots and lots of new services. There are great, great possibilities with this. (Analysts' price target is $21.)

Chart shows it running through a channel through 2016 and 2017 and it is positive. It is rolling over right now. This could come off. He is expecting a little bit of a correction on the market with the tax changes that are coming into the US. Some US investors would be more inclined to do some realization of gains and losses in January, versus right now. There could be a soft start in January and it could hit $22. If it got to $22, this would definitely be a Buy.