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Twitter: 115% Growth Will Smoke the Bears


Twitter looks good heading into its November 12 analyst day.

Sean Udall is the author of the TechStrat Report, the definitive resoure for serious tech investors. Take a free trial!

This article was published as a real-time TechStrat alert on Friday afternoon.

I'm adding more Twitter (TWTR) -- both common and calls.

The levels of stupendous insanity as well as idiotic absurdity (can I think of any more adjectives?) regarding Twitter has surpassed what I can bare.

Therefore, I must add to my position against the marauding hoards of lunacy.

I like the potential trading setup in front of the November 12 analyst day. If nothing else, maybe the senior management team can highlight/remind folks that 115% is still greater than say, 71%, which is Tableau Software's (DATA) growth. 

Even better, it's way higher than the 22% growth Imperva (IMPV) is posting.

Or they may just highlight the fact that Twitter is trading at a 50% discount to Facebook (FB) since none of the analysts have yet!

That fact itself is stunning. 

Don't believe me? The math is simple.

Twitter trades at 11.1X out-year sales vs. FB's 12.3X. Taking into account the fact that TWTR is projected to grow 65% vs. FB's 37%, TWTR trades at a 50% discount on growth. 

On other metrics, the discount is even higher, but who's counting?

And looking at all this, I realize I need to start winding up my Facebook short thesis again, at least as a pair trade.

The overpayment (and coming stock sales) for Whatsapp may come home to roost after all.

New! The TechStrat Report by Sean Udall. Sean provides in-depth analysis, strategies and trades across the technology sector. Take a FREE 14 day trial.
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Position in TWTR

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