Twitter, Inc

TWTR-N

(A Top Pick Aug 29/18, Up 19%) He sold it at $42. A great recovery story. User growth is still looking good. It hit his price target and they wondered if the user growth could continue. Investors are paying twice as much for half the growth of Facebook, so he moved there.

He doesn't follow the social media companies, but the issue with Twitter is them struggling with monetizing user engagement. Compare this to Google and Facebook, which knows how. Twitter has ups and downs in terms of usage.

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)