Twitter (TWTR) stock crashed on Tuesday after the lock up expiration period expired and insiders were free to sell their shares. This is a similar crash to what happened to Facebook (FB) two years ago where the stock dropped below $20 per share. I now expect TWTR to triple in 2 years but we could easily see more downside due to the fear in the market. Whether it was Apple (AAPL) dropping from $700 to $360 or Facebook (FB) dropping from $40 to $16, fear and money do not mix very well and investors do stupid things. In late to mid 2012 Chipotle (CMG) stock dropped 46% but it started one of the most powerful rallies in restaurant stock history as shares jumped from $233 to $622 in 15 months.
All of these rebounds started with on thing; a good earnings report. We will have to wait three months but if Twitter (TWTR) delivers a good report the stock will rocket back to $45-$50 in no time. 2015 is the year where Twitter (TWTR) will really start showing profits.
From a technical standpoint, TWTR is oversold but and will have support around $30. On the upside, resistance is located at $36.10. When you see $36.10 broken, the stock will have reversed trend.
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