So you think TWTR is worth $40 billion? I would disagree, and as soon as soccer moms commit every last investable cent they have on TWTR, the pros on Wall Street are going to yank the rug like something they've never seen. Their money will disappear faster than anything Blain or Copperfield could ever do. Just wait and see. Its coming.
Wall Street pros are about to take some retail TWTR investors to school. And it's going to hurt.
Some people never learn.
TWTR's current market cap is $32 billion. If anyone would stop to think about that for a single second, they would not only never buy TWTR at these prices, but they would buy as many puts as they could afford. Which is what I'm going to do very soon.
Sentiment: Strong Sell
You are forgetting that NFLX went from $300 to $50 (ouch) in July of 2012, and only after NFLX started making more $ and lots of content deals did the stock rise. $300 to $50 is a HUGE drop. This is the same fate anyone long TWTR will experience. By the way, NFLX has a current market cap of $21 billion. TWTR's market cap is an eye-popping, over bloated, ridiculous, irrational, and obscene $32 billion.
Do you think that a web-app company that is losing dump trucks of money is worth $32 billion? This irrational exuberance and eventual collapse will be studied and talked about for years and years to come.
Life is a cruel teacher: she gives you the test first, and the lesson later. Some people never learn.
So you believe a web-app company that lost $64.6 million in the 3rd quarter -- which is nearly three times its loss the previous 3rd quarter -- is worth $32 billion dollars, and should be worth even more? TWTR had revs triple in 2012, and they are STILL losing money.
I will soon take a MASSIVE short position in common stock, as well as option puts. This may be my easiest and most profitable trade of the year.
Sentiment: Strong Sell
....and then people will come to the realization that maybe a web-app company really isn't worth $32 billion dollars where the current market cap is!!!! The cheerleaders and retail buyers of this stock are going to get burned very badly by the real pros on Wall St. I am under no illusion that this company, which is losing money faster than our government can print it, is worth substantially less than where it is today. I expect to take a massive short position soon.
Yesterday the media "credited" a German auto writer for the sizable dip in TSLA's share prices. Upon reading his article, the writer makes several inaccurate assumptions. First, why does he assume that every would-be Tesla buyer in Europe only intends to drive the car hundreds of miles at a time? Studies have shown that the majority of all car buyers will very rarely exceed the battery capacity in a single day. Second, is the author oblivious to the fact that European buyers are able to plug their cars in when they get home!? This is no different from how people plug their cell phone in right before they go to bed at night.
Many countries in Europe appreciate quality built, luxury vehicles. Tesla offers one that faster, safer, and doesn't use petrol that costs drivers in the European market $6 a liter!
Tesla is working very hard to expand production capacity and increase the number of models, as well as erect Supercharging stations that are powered by the sun. Since Tesla is a growth company and we are in the early innings, the stock price will continue to increase with every incremental improvement the company makes.
The horse carriage makers didn't like it when Henry Ford mass produced the Model T. They said it was loud, noisy, slow, scared the horses, and would never replace a good horse. Tesla vehicles are fast, quiet, and will eventually replace cars with internal combustion engines. Only this time Elon Musk isn't scaring horses, he's scaring the auto and oil industries.
Sentiment: Strong Buy