Not even two months old yet and shares of Twitter are on a roll. More than doubling from the $26 IPO pricing in early November, and soaring 50% just since Thanksgiving.
At present, the newly public micro blogging site is now worth $30 billion, which not only puts it on par with more established firms such as General Mills or Travelers, but is also scaring analysts, two of which downgraded the stock on Monday.
While some are taking money off the table Joe Fahmy, managing director at Zor Capital, is preparing for the next big move, and sees the stock at $100, maybe by this time next year.
Related: Twitter goes public
“I know it‘s an aggressive call,” Fhamy says in the attached video, “but fundamentallyand technically, it reminds me of some of the big winners of the past.”
Specifically, Fahmy says the company’s triple digit sales growth will soon lead to profit growth, and argues that investors are always willing to pay up for that kind of action.
And as far as he can see, it’s not just "Mom and Pop" who are buying into the long term Twitter story.
“There were over 170 million shares traded last week,” Fahmy says, “That’s not from someone buying 50 or 100 shares.”
Related: Why Twitter has teen appeal: Rachel Fox
For him, this “crazy accumulation right after the IPO” is another indication of Twitter’s future potential. Fahmy notes that the management team in place has learned from Facebook’s mistakes and is moving forward with “the right balance of ads and the right recipe for revenue growth.”
To be sure, Fahmy makes it clear that, despite his his $100 target, he’s not saying we’re not due for a pullback, but in the next 12 to 24 months, he says this is gong to be one stock you wished you had owned at $50.
- Arts & Entertainment