Twitter Stock Already Down- Graded

A couple of weeks ago before the debut of the Twitter stock, we had discussed in Commerce 101 why we, individually, would buy or would not buy any of Twitter’s shares. Some arguments for the purchase of these shares had a tone of hope brought about by the common parallel drawn between the success of Facebook and the anticipated success of Twitter given that they are both modes of social media. These students wanted to buy into the hype of Twitter in order not to miss out on this opportunity like they did for Facebook. Other students argue that they would not buy into Twitter because there are no evident sources of profit to be made. The article, Twitter Stock Already Down-Graded, concurs with those students claiming that the valuation of this company at $24.4 billion is simply too high! The company has no legitimate way of turning a profit; an intelligent investor can only begin to imagine what the company’s first set of quarterlies will look like. Is Twitter a smart long-term investment despite the absence of its current revenue stream? I don’t think people should start doubting their investment just as yet. Think about it, what will happen when Twitter finds an approach to start making money and paying dividends? I believe the stock price can sky rocket even higher than it currently is, making this long-term investment less obscure than some critics make it out to be.

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