The recent market correction has torn nearly all tech stocks down. As the Apple example shows, a drawdown of 20 percent or higher was more the rule than the exception. But this autumn correction seems to have left a tech share almost untouched.
We are talking about the popular short message service Twitter (TWTR). After a setback of ten percent in early September, the stock has now hit a new 52-week high at $ 45.75. Since the Corona low, the price has now increased a whopping 130 percent.
$TWTR Love the CNBC pumps... thanks for the short opportunity 46.45+. 🤑— Anastasia (@_____Tasia_____) September 23, 2020
This relative strength of Twitter can be attributed on the one hand to the upcoming presidential elections in the USA, which traditionally ensure an increased number of users on Twitter.
On the other hand, a fresh analyst upgrade is causing euphoria among Twitter investors. The analyst Michael Levine of the Pivotal Research Group has upgraded the Twitter share from “Hold” to “Buy”. His price target is $ 59.75, which corresponds to an upside potential of over 33 percent based on the current price level. In particular, the analyst refers to Twitter’s strong user growth. In my eyes Twitter is still a no-go stock as they offer no real opportunity for marketers.