Should You Own Twitter in 2014? Two Fools Debate

With 2014 just starting, investors may be thinking about which stocks they want in their portfolios throughout the year. In this segment of Two Fools Debate, Fool editor Jamal Carnette and contributor Sam Mattera discuss whether investors should own Twitter  (NYSE: TWTR  )  in 2014.

Sam thinks Twitter remains an exciting business. Although it rallied tremendously after IPO, it's given back much of its recent gains in just the past few weeks. Sam thinks Twitter has become an integral part of the Internet, and its treasure trove of meta-data gives its platform value.

In contrast, Jamal thinks Twitter's present valuation is just too excessive. While he acknowledges Twitter's unique place in the Internet space, he thinks investors will get an opportunity to purchase shares at a more reasonable valuation at some point in the future. While Twitter may be growing its revenue, much of that growth is likely already baked into the stock at these levels.

A better stock than Twitter? Get our top stock pick for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 12, 2014, at 1:34 PM, ValueinvestorEU wrote:

    much of the growth is not baked into the stock. all the growth the company will ever have is baked in, as well as profit expectations..

    No serious investor can argue for holding twitter, unless its for momentum reason.

    Ever read articles about internet companies in 2000?

    The bullish twitter articles will be read for fun as well years from now.

    I love the product, but the company and the valuation has nothing to do with sound long term investing.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2791902, ~/Articles/ArticleHandler.aspx, 10/24/2014 5:01:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement