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Is Twitter, Inc. a Buy After a Sell-Off?

By Daniel Sparks – Feb 11, 2014 at 3:30PM

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Twitter shares are down about 18% since it reported fourth-quarter earnings. Is this a good time for investors to buy?

Twitter. Inc. (TWTR) shares are down about 18% since the company reported fourth-quarter results. While 116% year-over-year revenue growth for the quarter was better than expected, one lagging metric cast a shadow over the soaring revenue: slower-than-expected monthly active user growth. Twitter reported 3.9% sequential growth in monthly active users compared to 6.4% sequential growth in Q3 -- a significant slowdown for a company with such optimistic forward-looking assumptions priced into the stock.

With billions of dollars shaved off Twitter's market capitalization, is it time to buy shares?

In the video below, Fool contributor Daniel Sparks takes a look at Twitter's fourth-quarter results -- both the good and bad -- and comments on the social network's valuation. Watch the video to find out whether Daniel thinks Twitter is a buy, hold, or sell after the sell-off.

 

Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Twitter. It recommends and owns shares of Facebook. We Fools may not 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.

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