Twitter Inc (NYSE:TWTR) is bustling with activities right now. The company is moving forward in many different directions, from opening its offices at major locations across the world to announcing yesterday that it will make its analytics available to masses. The Wall Street analysts who had given hope on Twitter Inc (NYSE:TWTR) monetizing its user base are suddenly all praises for the company and that can be measured by the stock price of the company which is on a strong upward trajectory ever since it reported its second quarter earnings. Steve Grasso explained on CNBC why Twitter Inc (NYSE:TWTR) makes such a great buy right now.
With the help of a chart that contained Twitter Inc (NYSE:TWTR)’s price action since its IPO, Grasso explained how sometime after its IPO Twitter Inc (NYSE:TWTR) made a high at nearly $74. In the following months, after reaching the high, Twitter Inc (NYSE:TWTR)’s stock went down to a low of around $29.50. Twitter Inc (NYSE:TWTR) currently trades in the middle of those levels at $49.57.
Right after its second quarter earnings report Twitter Inc (NYSE:TWTR)’s stock had a massive gap-up from $38.5 to $46.30 and since then the stock hasn’t breached its July 29 closing price of $38.59, though it did trade downwar its recent lows being close to $42.50. According to Grasso, the $42.50 level is very crucial as a breakdown below it will completely halt the bullish trend that Twitter Inc (NYSE:TWTR) is witnessing right now. From $42.5 levels, Twitter Inc (NYSE:TWTR)’s stock has moved straight up, breaking its 200-Day moving average, which comes at around $46.55. Twitter Inc (NYSE:TWTR) is currently trading above its 200-Day moving average, which according to Grasso, it must hold.
For investors who are bullish on Twitter Inc (NYSE:TWTR) and want to buy Twitter Inc (NYSE:TWTR) at these levels, Grasso suggests holding there long position untill the stock doesn’t goes below its 200-Day moving average.
As of June 30, 2014, John Thaler‘s JAT Capital Management owns over 7.3 million shares of Twitter Inc (NYSE:TWTR).
Disclosure: None
Suggested Articles:
Best Financial Services Companies To Work For
