Shares of Twitter (TWTR) are moving higher in early trading again today on an upgrade to ‘buy’ from ‘neutral’ at SunTrust. Since declining more than 20% in two days last week and dropping more than 60% from all-time highs, Twitter’s stock has recovered more than 10%.
As the poster-stock of all things broken in momentum trades, Twitter embodies the big debate among the more aggressive traders on Wall Street: is this an oversold bounce or have these shares made at least a trading low and perhaps something even more?
In the attached video Jeff Kilburg of KKM Financial says he got involved in Twitter when it went under $30 and there’s still more room to run. “I think Twitter is a short-term trade as well as a long-term investment. I think they have to get their act together and get a little more focused but I think you keep a (stop) in the upper $20s”.
Away from Twitter, Kilburg is looking at NetApp (NTAP) which he regards as a company that “did nothing wrong” but still saw shares get pummelled to the tune of 25%. “There are some specific stocks within tech that people haven’t grabbed that are off the grid from momentum stocks,” he says. “Try and find stocks like NetApp that you can get in from a long-term perspective.”
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