Is It Time To Abandon Twitter Inc (TWTR) Stock?

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Will A Twitter Buyout Happen?

The biggest growth driver for the share price in 2016 was the talk of an acquisition by Salesforce. However, this has fallen through and they are on the lookout for other potential buyers.

Twitter Inc (NYSE:TWTR) isn’t an attractive acquisition proposition at present. For instance, we are yet to see Twitter make a profit. Therefore, any company looking to buy them would need concrete plans on what to do with the social network. Moreover, a buyer wouldn’t have the benefit of acquiring a strong management with a strong track record, as part of the deal. If what we have seen from Twitter is anything to go by, they would have to revamp the entire company- and that includes staff.

Also Read: Twitter Inc: Don’t Sell TWTR Stock, But Do Read This.

It is worrying that TWTR grew in value amidst talk of an acquisition. This shows that investors want a big change and are likely to cash in at the smallest opportunity. Unless Twitter makes some drastic changes, they will suffer with regard to revenue and the share price will plummet. Competitors such as WhatsApp and Instagram are yet to be fully monetized.

Conclusion

In conclusion, if you are still holding onto Twitter stock, it is worth dropping it like something on fire- because the company is burning up from the inside. Taking everything into account, the real value of the share is closer to $13. All it would take is for Facebook to fully monetise Instagram and WhatsApp for Twitter to see their revenue numbers slip.

If you must hold a tech stock, put your money on Facebook or Microsoft Corporation (NASDAQ:MSFT). If you want other options, check out Amigobulls’ top stock picks (3), which have beaten the NASDAQ by over 110%.

The article Is It Time To Abandon Twitter Inc (TWTR) Stock? originally appeared on amigobulls.com. Watch our analysis video on TWTR

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Additional Links:

(1) https://www.thestreet.com/story/13937602/1/twitter-is-getting-hard-to-defend.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo&ref=il

(2) http://www.thedrum.com/news/2017/01/03/nfl-live-streaming-went-incredibly-well-twitter-theres-still-no-word-next-season?ref=il

(3) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im

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