With yesterday’s events, the defect from Trump administration is accelerating. Twitter was weak today (January 7th) – it was down while a lot of internet stocks have been ripping. While Facebook and Twitter were both being criticized, only Twitter suffered in a big tech rally day probably because of the perception that Trump administration has been very helpful for Twitter’s growth.
Twitter is definitely a beneficiary of President Trump’s election in 2016 and his administration – he started tweeting and that catalyzed not just other politicians, but literally EVERYONE that has something to say is on Twitter, including corporations.
I recently purchased Twitter stock – I will be honest in that I admit I started using Twitter during Trump presidency because as a hedge fund analyst, I needed to know whenever President or any significant (defined as market moving) government officials send out a message.
Once I got in on Twitter, I was really surprised by amazing wealth of collective knowledge for so many things.
More importantly, I think that Twitter is the cornerstone of disruption and democratization of media industry. As an investor, you must have Twitter account to stay on top of your companies and more importantly on top of thoughts in other investors in those companies (whether they are bulls or bears).
REALLY SMART PEOPLE SHARE THOUGHTS
There is A LOT of smart people out there that are not getting air time on traditional media – maybe there don’t have the right credentials, career path, or viewpoint. Regardless, they share their thoughtful ideas for FREE to Twitter and the world! It is your job to discern and verify their thoughts, but honestly, if you find the right people, their research is so much better than broker research reports from big banks. Most of the brokerage reports tend to be garbage with hidden agenda of just selling the stock of coverage company so that the bank can land on the companies’ next deal anyway.
I source many new ideas on Twitter and learn so many new things – without Twitter, I would not have been able to learn deeply about edge cloud computing companies ($FSLY $NET) of real estate disruptor ($RDFN) or many other companies.
This is particularly important for biotech investing where amazing academic pioneers share their thoughts on the latest technology.
Before Twitter, there was NO WAY I could get thoughts of amazing entrepreneurs like Chamath or Elon Musk directly and real-time.
LATEST NEWS AVAILABLE REAL-TIME 24/7
Twitter has a lot of people that these people are everywhere – not just US, but all over the world. This means the collective source of knowledge is truly wide. I track newsflow on the companies that I love through Twitter – there is always someone who is willing to share what they found online or locally.
For instance, there is an article about NHTSA clearing safety review of Tesla vehicles (this is as of 01/08/2020). This information is very new and I was able to get the information quickly.
TWITTER USER BASE KEEPS GROWING
Knowledge on Twitter has been expanding exponentially. However, the user base growth has been stalling. I think engagement per user is likely to be increasing based on anecdotal datapoints – meaning aggregate engagement is going up. Still very strong Y/Y growth.
CONCLUSION
If you are serious about investing and making sure your hard-earned capital is deployed as efficiently as possible, make sure to use Twitter – it is truly unique platform that allows you to gather knowledge, cutting edge information, and do check-up on bulls/bears on all of the companies. Obviously CAVEAT EMPTOR – you should be careful about information that you take on, but that is with anything you read, including those from big-name investment banks whose writers are essentially just glorified salesmen. Many are just Pied Piper.
What do you think about $TWTR’s fate going forward? Are you bullish or bearish?
As a disclosure, I own Twitter stock and am looking to increase my holding through this weakness.
