While Telsa was taking a breather for a month Twitter enjoyed the status as momentum stock .. No more. Tesla is back and all the momentum money is flowing back to Tesla. Look at the volume of Twitter.it tells the story.. VOlume was 75 million when it was at 75. VOlume is less than 20 million today. Twiters best momo days are behind us.
In short, SELL TWTR ..BUY TSLA...like money managers are doing.
Goldman : After our upgrade we will immediately start selling as soon as we get some idiot longs buy in. We will sell as long as stock is above $25..It's free money anything above $25. Hey CEO Can you do some favor and release some new products with some intelligent looking names..so more longs get sucked in.
The bottom line is that the era where stocks go up irrespective of their fundamental valuation is probably over. With Fed tapering on the horizon, my opinion is that 2014 will be a very difficult year for investors. And I think we have gotten a taste of this in the first few trading sessions of the year. As a result, investors will be wise to be careful what they buy and how much they pay for it.
And paying through the nose will simply not make you money from now on. Paying 35 times sales for any company has never made money for anyone. At least I do not know of a single case on a long term timescale. So unless you are day or swing trading Twitter, it is not a good idea to have in your portfolio as a long term core position.