Twitter Inc (NYSE:TWTR) had a very eventful Tuesday as the stock went up by around 4% on the day. There were multiple reasons behind the rally of Twitter Inc (NYSE:TWTR) stock. Twitter takeover talks, Twitter’s new feature introduction which helps easier tweet reading and AlphaOne Capital Senior Portfolio Manager Dan Niles’s change of stand on Twitter Inc (NYSE:TWTR) stock has pushed the stock beyond the $52 mark on Tuesday. Fast Money traders Tim Seymour, Brian Kelly, Steve Grasso and Guy Adami talked on CNBC about their view on the Twitter Inc (NYSE:TWTR) stock.
Dan Niles has announced earlier on Tuesday that he is not long Twitter Inc (NYSE:TWTR) stock as opposed to his comments during June. This came as a surprise for many.
“With Twitter I mean obviously the valuation is something that’s impossible to get, comfortable with and relative to other names out there. But the real problem with Twitter and why we have been short this stock pretty much [..] is because their user growth had massively slowed down and what we finally see is them making moves between different features such as instant timeline or while you are away. But more importantly the search deal with Google that they went ahead and signed, where the Google will be able to access all the tweets coming and be able to show that when you do a search, we think that’s going to really help get their monthly active users, which has been a big problem for this company,” Niles said.
Seymour said that people are getting more comfortable with what Twitter Inc (NYSE:TWTR) CEO Dick Costolo has said before. He feels that $52 is the key level to break out for Twitter Inc (NYSE:TWTR) stock. He pointed out that we had a break out past that $52 level on almost 2.5 times volume. So he thinks that it was a real move. He said that video is going to be a $17 billion market by 2017 and Twitter Inc (NYSE:TWTR) is going to have a big chunk in that market. He feels that people are starting to see the potential that Twitter Inc (NYSE:TWTR) has which pushed the stock higher.
Grasso said that either a JV or some acquisition might happen which is why the stock is getting attention at the moment. He feels that Google might not takeover Twitter Inc (NYSE:TWTR).
Adami pointed out that couple of years ago Facebook was in similar situation, when everyone pointed at management issues. He said that Facebook stock was in the gutter at that moment and eventually the stock turned around and is hitting new highs. He feels that Twitter Inc (NYSE:TWTR) is facing similar situation at the moment. He said that Twitter Inc (NYSE:TWTR) deal might worth around $40 billion, which he thinks is possible at the moment. He said that report on 20th April might be the key for Twitter Inc (NYSE:TWTR).
“Twitter is where Facebook was couple of years ago,” Adami said.
Kelly said that Twitter Inc (NYSE:TWTR) is starting to do a couple of things right and people are starting to see the story. He feels that Twitter Inc (NYSE:TWTR) is the unique property on the web.
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