How would your retirement savings account look if it plummeted more than 65% within the next 18 months?
Don’t worry – I’m not going to let that happen to you if you follow my lead. But unfortunately there’s been a HUGE account-killer out there that you definitely know the name of.
Will it continue to devastate retirement savings, or is it actually turning into a double-edged sword that could wind up DOUBLING your money? Let’s find out…
You probably hear the word every single day. It may even be an app on your phone right now. Either way, it’s a big part of modern society. I’m talking about Twitter (TWTR), the social networking giant.
Here’s the raw truth about what Twitter has done to its investors’ money over the past couple of years…
From a height of $50 in April of 2015, Twitter has tumbled all the way down to its current level of $17 per share. An individual investor lost more than half of his or her money by betting on Twitter.
But that’s not the whole story. Recent developments had investors wondering if Twitter stock could rise back to those highs with talk of takeover interest and a bidding war between the like of Google parent company Alphabet, Apple, Microsoft, Disney, and Salesforce.
That did enough to boost shares up to $25 last week from lows of $14 in June.
Not a bad 75% gain…but only for those who timed it perfectly!
The momentum quickly stalled when the takeover interest became lackluster on questions about how to monetize the social networking platform.
It only took 3 days for Twitter to drop straight back down to $17, wiping out nearly all those profits made since the summer.
So what’s next?
Will there be more fallout and bigger losses for Twitter investors, or could there be a chance for this stock to once again rise up to levels that would DOUBLE your money on it?
Here’s what I see right now:
- There’s a significant ceiling for TWTR at $25 based on potential profit-taking going back to August.
- Conversely, there should be a strong floor for TWTR at $14 that’s been set by May action.
- Takeover talk seems to be driving TWTR, which means that you can expect heavy volatility until it’s resolved.
My best advice is to wait until TWTR can break that $25 level to get in on TWTR stock. By that time, it will have overcome profit taking AND jumped over its long-term moving averages.
But if you’re a value investor who’s willing to bet on a down stock, a price of $14 might be your best entry level. But if you get in and TWTR dips below $14, get out immediately.
Remember, a stock can always continue falling until it hits zero.
