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GreenWood Investors is Betting on Twitter (TWTR) Stock

Alex Smith
·3 mins read

GreenWood Investors recently released its Q2 2020 Investor Letter, a copy of which you can download here. Steven Wood, CFA founded Greenwood Investors, LLC in 2010. This year so far the fund has underperformed its benchmark the MSCI ACWI All Cap. You should check out GreenWood's top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, GreenWood Investors highlighted a few stocks and Twitter Inc. (NYSE:TWTR) is one of them. Twitter Inc. (NYSE:TWTR) is a social networking company. Year-to-date, Twitter Inc. (NYSE:TWTR) stock gained 22.4% and on August 20th it had a closing price of $38.96. GreenWood Investors cared to mention Twitter Inc. (NYSE:TWTR) in its investor letter, though they didn't say why they really like the stock. All they said is this:

"Twitter, for instance, sold off given the weakness seen in brand advertising, where it generates roughly 80% of its revenue. But the service has become an essential information tool, particularly during Covid-19, which is reflected by record daily user growth that we had seen prior to the company confirming this on its most recent earnings report (+34%). We’re most excited about the new ad server which came online in June. This new server will allow the notoriously slow company to more quickly develop Direct Response ad formats, which are roughly 80% of Facebook’s revenue and command materially higher price points. Twitter has not been using the targeting capabilities its service enables, and has not developed ad formats to support commercial transactions in-app. Fixing this over the next year is going to have a very pronounced effect on the company’s user monetization, while that user base is experiencing record growth. But, again, you wouldn’t have seen this show up in the second quarter, with revenue -19%. I posted our introductory research on Twitter to investors back in June in case you haven’t had a chance to read it yet."

Twitter Inc (NYSE:TWTR), Twitter Icons, Iphone, Symbols, Bird, Logo, Sign,
Twitter Inc (NYSE:TWTR), Twitter Icons, Iphone, Symbols, Bird, Logo, Sign,

Ellica / Shutterstock.com

In June, we published an article revealing that Pinterest Inc. (NYSE:PINS) could be the next Twitter Inc. (NYSE:TWTR), according to an investment newsletter Value Investor Insight.

In Q1 2020, the number of bullish hedge fund positions on Twitter Inc. (NYSE:TWTR) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Twitter Inc. (NYSE:TWTR) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out ideas like this under-the-radar stock to identify the next tenbagger. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.