Twitter has started slimming down. It will be sacking [or already has laid off] 8% of their workforce. It's the sort of news which investors like because soon after the announcement was made, Twitters stock shot up by 5%. Some analysts think this might work against Twitter in the long term if some of their workers start leaving the company before they too, lose their jobs. So even though Twitter made some gains it still is far from stable.
The $TWTR price action on news of 336 firings was, in my opinion, just short term day trader action playing off against the shorts. Looking beyond the price gyrations of yesterday and today, there is a lot of discussion on the significance of announcing firings ahead of earnings. Do the firings portend disaster in the upcoming earnings announcement? Seeking Alpha articles and comments -- http://seekingalpha.com/symbol/TWTR -- offer a variety of thoughts. The comments on StockTwits -- http://stocktwits.com/symbol/twtr -- are not as focused, but there are some interesting comments within. For either website, just apply your own common sense filter to what you read. Frankly, I think the news of the appointment of a ex-Google executive -- http://seekingalpha.com/news/282870...usiness-chief-kordestani-its-chairman-updated -- is more valuable to us shareholders than a few layoffs. One could argue the links between Twitter and Google are additionally strengthened, adding to the recent improved search engine linking tie up agreement. Back to those being fired by $TWTR, yes, being fired is traumatic. But have no fear. Job recruiting of Twitter employees is moving ahead full steam, starting just after the @jack letter was made public. How? Using Twitter itself, of course. Search the keyword #Twitterlayoffs and look back through the tweets. This piece -- http://venturebeat.com/2015/10/14/twitter-layoffs-spark-recruiting-frenzy-on-where-else-twitter/ -- is just one of several media pieces commenting on the firing news. For the record, I'm holding my position long. Giddyup.
I still think Google has to buy Twitter or Twitter is doomed. Twitter has such a very tight revenue potential they have to use the company that handles like 75% of all online advertising. In other words, without Google, Twitter is never going to have viable revenues.
I'm also expecting Twitter to be bought by one of the bigger boys in the market and while Google could be one option, Facebook could also make a bid, and in turn that may start a bidding war and the price will only increase if that were to be the case.
The latest rumor is that Steve Ballmer supposedly bought 4% of the company. We have no way of knowing without Ballmer admitting it, since no one is required to file such a position with the SEC if they stay under 5% of outstanding shares in any one company.
https://www.thestreet.com/story/13750135/1/twitter-twtr-stock-soars-on-takeover-speculation.html Sold most of mine on today's big pop, made a few hundred bucks. My guess is that if someone doesn't make some sort of a bid soon it will drop like a stone again - at least until the next round of rumors start up. Hopefully someone will come in and make an offer soon for at least $25... Transaction Date Transaction Type Dividend Per Share Shares Transacted Share Price $ Split Ratio Commission $ Transaction Value $ Share Balance 7/29/2015 Buy 78.0000 31.7200 0.00 2,474.16 78.0000 10/28/2015 Buy 78.0000 29.5000 0.00 2,301.00 156.0000 2/12/2016 Buy 144.0000 15.7700 0.00 2,270.88 300.0000 4/27/2016 Buy 50.0000 15.0050 0.00 750.25 350.0000 7/27/2016 Buy 50.0000 15.8500 0.00 792.50 400.0000 9/23/2016 Sell 350.0000 22.5200 0.00 7,882.00 50.0000
I saw the pop in the premarket. It was trading >200% average trading volume 30 minutes after the market open. I figure what the heck... I'm holding to see who buys TWTR by the end of the year. Note that RBC Capital's analyst Mark Mahaney who downgraded stock late yesterday was let go at Citi 3 months ago after being investigated for fraud. With the after hours downgrade, one could have purchased shares for $14.50 or so. See SA articles for more. He was on CNBC Halftime Report trying to defend his call. Can you spell market manipulation? Looks like the close will be mid-$22's. The Stocktwits comments today have been different, to be sure.
