Tweeter going right back to $70, disregard all the Downgrades, few reasons below.
1-Analyst's those who r Downgrading the stock they themselves want to get on this stock at lower price.
2-Many of them have a price target of $40- $50 Dollars.
3-Lets assume the Stock goes to $40 or $45
4-Analysts those who bought the shares at $40, they will upgrade the stock & it will go right back to $70 again.
5- So Whats the point,If u know the potential of TWTR. I will stay long, beside TWTR has proved itself to be a powerful social media tool for celebrities,allowing them to promote their newest projects and connect with fans much more intimately than ever before.
If you're confident it will go to $40-45, wouldn't it be beneficial to sell now, so you can buy more shares at that level? Nobody knows how successful or unsuccessful Twitter will be. Right now price movement is based on technical analysis. The momentum is drying up with the lower volume. Whenever a stock declines on lower volume, it's a bad sign for those holding. I would recommend watching the charts for the next few days and see if there is any bullish indication. I have seen a lot of people claim there was a doji on Friday, however with no confirmation on Monday, a doji is essentially worthless. I currently own puts, but my setiment could change if I see a reversal, however there is no indication that will happen any time soon. Don't fall in love with a stock, set your stop losses and get in later if you feel this stock will be huge in 3-4 years. But right now, the momentum is swinging downards.
when a stock declines on lower volume it means the sellers are drying up. The buyers are playing a cat and mouse game waiting for the sellers to exhaust themselves. If the stock can hold 55 this would be such an example.
Most analysts have a $30 price target by end of 2014, and that's if they execute flawlessly and gain a huge share from Facebook and Google. $30 is too generous in my opinion. As d_rhee2k mentioned you can sell now and recapture more shares at a lower entry point.