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

By Daniel Sparks – May 10, 2014 at 1:30PM

NYSE: TWTR

Twitter

Here is a closer look at the key reasons behind Twitter's plummeting stock price. And, more importantly, is the stock oversold?

Twitter (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.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Facebook, LinkedIn, and Twitter and owns shares of Facebook and LinkedIn. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.