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.

Why is Twitter Sliding Today?

After closing higher on Wednesday, Twitter Inc (NYSE:TWTR)‘s stock reversed back to losing ground and is down by over 6% on Thursday, which extended its decline since the end of April when it reported disappointing financial results, to over 50%. It’s not clear what sparked the decline. Yesterday it was reported that the company’s board of directors had decided to appoint the current interim CEO and co-founder Jack Dorsey to the position permanently. But an update from Re/code, referring to sources familiar with the matter, said that the appointment of Dorsey is not clear yet. Therefore, the main reason for the decline might be the looming uncertainty regarding Twitter’s leadership.

Twitter Inc (NYSE:TWTR), Logo, Sign, Phone, Display, Smarphone, Page

Quka /

It’s not clear what the future holds for Twitter Inc (NYSE:TWTR), even if it appoints new leadership, but for now, the best thing would be not to bet on the company, at least not for the medium-term. And here’s why. The company has been losing its popularity among the hedge funds from our database. At the end of June only 47 out of more than 700 investors reported long positions that represented less than 3% of the company. The number of funds bullish on Twitter fell by 17 during the second quarter, while the total value of their holdings slumped to $701.39 million from $1.75 billion. Among them, the top two shareholders, Daniel Benton‘s Andor Capital Management and David E. Shaw’s D. E. Shaw cut their positions by 63% and 57% to 1.50 million shares and 1.12 million shares respectively.

Follow Twitter Inc. (NYSE:TWTR)
Trade (NYSE:TWTR) Now!

By comparison, Facebook Inc (NASDAQ:FB) ranked as the third most popular stock among the funds we track (see the full list here), as it was included in the equity portfolios of 133 investors, which held in aggregate $8.86 billion worth of stock, representing 3.70% of the company.

The comparison of these figures shows that smart money is more confident about the prospects of Facebook than they are about Twitter. Taking into account that hedge funds commit a lot of energy and resources into identifying the best investing opportunities, following the collective sentiment of a select group of hedge funds represents one of the less complex ways to benefit from the smart money’s expertise.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.