2 Plummeting Tech Stocks on Sale: Yelp and Twitter

In the video below, Motley Fool portfolio manager David Meier and managing editor Eric Bleeker discuss tech events over the past week. 

Throughout 2012, momentum companies that often exhibited little-to-no profitability but high revenue growth were some of the market's top performers. Well known stocks like Netflix and Tesla epitomized the trend. Yet, since the Nasdaq hit new highs in early March, many of these momentum stocks have seen vicious pullbacks. 

In the video below, David Meier highlights two high-flyers that he feels could be strong buys after recent retreats. He singles out Yelp  (NYSE: YELP  ) , which is off 43% since the beginning of March and Twitter (NYSE: TWTR  ) , a stock off 45% from its December peak. 

While David admits both stocks are still extremely pricey after their recent sell-offs, he highlights Yelps ability to continue building additional services for local businesses on top its platform. With regards to Twitter, Eric questions recent user engagement statistics, but David believes the company's management is making enough changes to assure Twitter remains a top social platform across the foreseeable future. While both Yelp and Twitter are still pricey stocks that could continue to see their share prices fall if the broader tech market sell-off continues, David believes long-term investors in either company will be rewarded if they can exhibit the patience to hold the stocks through continuing market turbulence. 

To see Eric and David's full thoughts and discussions on these companies, watch the video below. 

3 stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (1) | Recommend This Article (4)

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 April 30, 2014, at 4:32 PM, yoshii wrote:

    Maybe actually producing something worthwhile is coming back in style?

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: 2933413, ~/Articles/ArticleHandler.aspx, 9/4/2015 8:48:14 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...

David Meier

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,374.76 23.38 0.00%
S&P 500 1,951.13 2.27 0.00%
NASD 4,733.50 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:00 PM
TWTR $28.30 Down +0.00 +0.00%
Twitter CAPS Rating: ***
YELP $24.17 Down +0.00 +0.00%
Yelp CAPS Rating: **
NFLX $101.06 Down +0.00 +0.00%
Netflix CAPS Rating: ***
TSLA $245.57 Down +0.00 +0.00%
Tesla Motors CAPS Rating: **