Twitter Inc (NYSE:TWTR)‘s stock price continues to be affected by the glum economic situation in Europe like other mega cap tech stocks. Jim Cramer on CNBC talked about why Twitter Inc (NYSE:TWTR) could still be a buy.
Cramer explained how the geopolitical situation in Europe has a significant impact on tech companies including Twitter Inc (NYSE:TWTR) as they have significant exposures in the European Market. He particularly cited the continuing tension in Ukraine.
“[…] A lot of tech is Europe. As I contnue to say Europe is the biggest danger zone. Europe is self inflicted. You need to wake up one day and see that Ukraine has got a buffer zone in there. Ukraine joins EU but not joins NATO […],” said Cramer.
Despite a sluggish European economy, Cramer said that Twitter Inc (NYSE:TWTR) was a buy. He reasoned that Twitter Inc (NYSE:TWTR) has been in a major profit mode and although the European economy might have an effect on Twitter Inc (NYSE:TWTR)’s price as it takes its Euro trip but will not be strong enough to landslide the stock.
He also warned that Twitter Inc (NYSE:TWTR)’s buy outlook is on the down side, so investor’s should not run away when the stock tumbles still a bit lower, but it will soon rebound. Euro-trip can’t last for a long time especially when it is not so much fun for Twitter Inc (NYSE:TWTR).
Cramer’s opinion on Twitter Inc (NYSE:TWTR)’s rebound is not shared by all investors. Peter Thiel who is a co-founder of PayPal had a difference of opinion with Cramer’s outlook.
The social media platform has lately also been criticized as suffering from inactive users. People have taken a better liking to Facebook in its stead. However, given the difference in content of Twitter Inc (NYSE:TWTR) it has a strong following.
Twitter Inc (NYSE:TWTR) is now trading at $52.18 which is about 0.5% higher from yesterday’s price at the closing bell.
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