The Red Flags Sending Twitter, Inc. Stock to All-Time Lows

Twitter (NYSE: TWTR  ) stock has taken an incredible hit lately. With the help of the recent lockup expiration, shares have sunk 50% from the all-time highs it achieved in late 2013. In fact, Twitter shares recently reached all-time lows.

In the following video, senior Fool technology specialist Daniel Sparks examines the reasons for Twitter's decline. He identifies two red flags that have investors concerned: a pricey valuation and slower-than-expected user growth. But Daniel also notes that the market's dramatic response to these red flags may be overblown. A bit of perspective reveals an excellent and rapidly growing business that could make a solid long-term holding after the sell-off.

Did you want in on Twitter stock at near-IPO prices? Now may be your chance.

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  • Report this Comment On May 15, 2014, at 5:05 PM, Hansen wrote:

    Twitter generates its revenues by promoting Tweets are similar to the sponsored ads seen on Facebook, as in these tweets show up in users' timelines

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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