The reason for buy or short TWTR is:
Long: 1) there are many options for TWTR to be success (however it needs time), and 2) the worst case, TWTR could be bought out - therefore Long doesn’t worry
Short: for serious shorts, they bought “call“ option to protect possible price soar due to “buy out” – therefore Short doesn’t worry
This stock has been over sold (or short), however both sides (long and short) are not really worried in a short time period based on the reasons described above. This balance between Long and Short will be broken soon. My prediction is Long will win, and it’s time to buy.
There are two ways that TWTR could be success: 1) a new strategy developed to gain users and make money, and 2) bought by a bigger player such as GOOG, MSTF, etc. With the CEO being out, the problem in TWTR is not solved, however one of the two ways mentioned becomes much possible to be success. It's time to buy.
Option players drive the price of TWTR. There won’t be buyout, or management replacement in short team. However a meaningful dear with strong companies such as GOOG, MSFT, IBM, etc. is very possible for future business direction. I believe that we should see something in this regard soon. I am in.