Twitter, Inc (TWTR)

This is interesting, given that Microsoft (MSFT-Q) bought LinkedIn. This company does make money. It has gone through some difficult times since its IPO, but it does have a lot of users. It’s a valuable asset, but how they monetize that asset is very difficult for management to think about. He thinks someone will want to own this and it will be more valuable.

He has been very negative on this. Has never actually Shorted the stock, but thinks it is a questionable business model. Expects people will eventually get tired of 140 characters. They need to either expand their technology or find a way to become more profitable.

(Market Call Minute.) This has terrible price momentum and they don’t seem to be able to get user engagement up or how to monetize.

This has been struggling for a long time. Haven’t been able to grow their monthly active users all that dramatically. They did a fantastic job of turning those users into profits and monetizing their platform. There has been speculation for many years that Google (GOOG-Q) might take them over.

A very embattled company. Has dropped substantially from where it was valued when it first came public. This is starting to get a little interesting, perhaps as a speculative Buy. Trading at an all-time low. They also have $3 in cash on the balance sheet. Not going out of business anytime soon.

If you are looking in this world he would guide you here, but he does not own this because he is more conservative. They have not been nearly as successful as some other social media platform in monetizing users. Take a good look at Facebook if that is where your interests lie.

(Market Call Minute.) Doesn’t understand how this is ever going to make any money.

Management is the primary thing in all businesses. They have shifted their management in the last few years. They have not figured out how to fully monetize what they are doing. They have to have a clear path as to how they are going to grow into a higher multiple. It is creating a bit of a base here. You would have to be pretty active here.

Charts on this always show a pattern of lower highs and lower lows, which is quite justified fundamentally. They have a lot of work to turn around. Have a very consistent pattern of beating on earnings, but that doesn’t matter if the chart is going against you and the fundamentals are not there.

There has been no establishment of a support level yet. Technically it is clearly in a downward trend and trading less then its 20 day moving average as well is underperforming the market. There is no indication that this has stopped going down. There are no signs of support.

If you want to own something in social media, own Facebook (FB-Q). It has held up much better than the rest. In the short run, Twitter has got a lot to prove that they can find a way to monetize their business, and have had a struggle up to now. He would Sell this, and if you want to own social media, focus on Facebook.

If you are an investor, looking out 5 or 10 years there is some value there. If you are a trader, then your stop should have been tighter than it was. We are now below the IPO price. People are questioning how they can monetize. Don’t add to it, but stick with it.

Prefers other technology investments. There is not a lot of good news on this company right now. The recent increase in character limit doesn’t do a whole lot. There have also been a bunch of CEO botched jobs.

This is up against Google (GOOG-Q) and Facebook (FB-Q). The company is dropping right now. Their users are declining. It has some pretty tough headwinds right now. If you are going to look at a social media name, he would lean more towards Facebook and/or Google.

This has been the bad boy of the technical group. When you have a sector that is moving, and the stock within that sector is not, that is a sign of problems. There has been some short-term support broken that the stock has seen over the last little while. Doesn’t like the look of the chart and the fact that it is underperforming the sector.