Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Michael Khouw: No Major Catalyst To Propel Twitter Inc (TWTR) Stock Before Next Earnings Report

Twitter Inc (NYSE:TWTR)’s earnings report has become the major talking point in the last few days. Even though Twitter Inc (NYSE:TWTR) managed to meet Street’s expectations to a certain level, the social media company has given a much lower full year guidance for 2015, which displeased many investors. Twitter Inc (NYSE:TWTR) stock plunged soon after and dropped more than 20% of its value. Meanwhile, Jack Mohr of Action Alert Plus and Michael Khouw of Action Alert Options discussed on ‘The Street’ about Twitter Inc (NYSE:TWTR) stock and what investors could do with it at the moment.


Khouw said that it has been a tough quarter for Social media stocks in general except for Facebook Inc (NASDAQ:FB) and to some extent LinkedIn Corp (NYSE:LNKD). He pointed out that there is an unknown material sitting on the horizon for Twitter, which is the Periscope. He feels that Periscope is going to increase user engagement in Twitter platform significantly, which has been their major problem. He said that Periscope effect on Twitter’s user engagement was not a part of the last earnings report. He mentioned that we might be able to get some transparency on that factor in the next quarter.

Mohr pointed out that the investors had lost trust in the Twitter management.

“I think the big thing is that the trust in management has eroded and they lost that trust because in the fourth quarter they made some pretty strong promises and laid out some pretty aggressive full year expectations and I think they were getting excited about Periscope, about some new products, about the partnerships with Google and so they set the expectations very high and Twitter simply did not deliver, but worse they basically said that we don’t know what’s going to happen rest of the year. They lowered their guidance, but they didn’t even provide guidance on active users. So I think that its going to take actual results to get investors back in this stock and I don’t see results coming in potentially next 2 quarters,” Mohr said.

Khouw said that when stocks start to jump around like Twitter’s stock, options premium remains elevated. He said that there is no major catalyst to propel Twitter stock higher before the next earnings report, except for the Google takeover talks. He said that investors who own the stock should consider selling some June 40’s or the June weekly 40’s and collect 2.5% to 3% premium.

Mohr accepted that Twitter stock might get interesting in the long term. He feels that there is catalyst like innovative products, Periscope and Google partnership to propel the stock higher in long term. He thinks that the Google partnership is going to be very important for Twitter, since Google can teach a lot of tricks to monetize the market, which is the most basic need for Twitter at the moment.

Disclosure: None

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.     Suggested Articles: Most Popular Social Media Websites Biggest Websites in the World

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!