Twitter is nearing bottom, trader says after Ark Invest buyout – .

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Twitter is nearing bottom, trader says after Ark Invest buyout – .


Twitter is approaching a turning point, according to one of the top strategists.
Shares of the social media company hit record lows since 2020 on Thursday, extending a decline that began in late October and accelerated after the announcement on Monday that chief technology officer Parag Agrawal would succeed Jack Dorsey as CEO.

Cathie Wood of Ark Invest confirmed that her company bought 1.1 million shares of Twitter after the change of management, telling CNBC PRO on Wednesday that she liked Agrawal’s vision for the company and the power to Twitter check in regards to the NFT craze.

Now the stock is near a potentially crucial turning 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 it could bottom out over the next couple of weeks,” Newton said. “It’s fallen almost 50% now since the peak in mid-February and often, technically, that’s a very important sign if you see an absolute 50% retracement. “

The stock is also significantly oversold and is approaching old highs of 2018 and 2019, “a very key support level” around the $ 42 level, Newton said.
“The risk-reward for me is getting more and more very, very good,” he said. “I think the stock has bottomed out over the next couple of weeks. It should start to recover slowly until the mid-1950s. “

Twitter shares fell nearly 2% at the start of Thursday’s session to just over $ 42.

The 3.78 billion social media users around the world are expected to continue to advance the whole space, said Michael Bapis of Rockefeller Capital Management in the same interview.

“Innovation is out of the ordinary in this sector. The competition is really intensifying, ”said Bapis, CEO of Vios Advisors.

“Because advertising dollars will add to revenue streams, these companies can continue to make money while innovating and becoming something in the future. So I just think that the whole tech space, of which social media is an integral part, is going to continue to grow, it’s going to continue to be in our world and we as human beings are more dependent on it. than we ever have been. “

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