Twitter is approaching a turning point, says a top strategist.
Shares in the social media company reached the lowest level not seen since 2020 on Thursday, expanding a decline that began in late October and accelerated after Monday’s announcement that Chief Technology Officer Parag Agrawal would succeed Jack Dorsey as CEO.
Ark Invest’s Cathie Wood confirmed that her company bought 1.1 million shares in Twitter after the change of leadership, and told CNBC PRO on Wednesday that she liked Agrawal̵[ads1]7;s vision for the company and Twitter’s verifying power when it comes to NFT mania.
The stock is now nearing a potentially key point, Fundstrat Global Advisors’ global head of technical strategy, Mark Newton, told CNBC’s “Trading Nation” on Wednesday.
“We’re starting to see signs that this could bottom out over the next couple of weeks,” Newton said. “It has fallen almost 50% now from the top of mid-February, and often, technically speaking, it is a very important sign if you see an absolute 50% retracement.”
The stock is also significantly oversold and is approaching previous highs from 2018 and 2019, “a very important support level” around the $ 42 level, Newton said.
“The risk reward for me is getting more and more, very good,” he said. “I think the stock will bottom out over the next couple of weeks. It should start a slow rise up to the low to mid ’50s.”
Twitter shares fell nearly 2% early Thursday trading to just over $ 42.
The 3.78 billion social media users around the world should continue to drive the whole place higher, Rockefeller Capital Management’s Michael Bapis said in the same interview.
“Innovation is off the list in this sector. The competition is really fierce,” said Bapis, CEO of Vios Advisors.
“Because advertising dollars will increase revenue streams, these companies can continue to make money while innovating and becoming something in the future. So I just think the whole technology area, of which social media is a big part, will continue to grow, it will to continue to be in our world, and we as humans are more dependent on it than we have ever been. “