X
<

Is Mark Cuban’s Stance on Twitter an Investment Opportunity?

PART:
1 2 3
Is Mark Cuban’s Stance on Twitter an Investment Opportunity? PART 1 OF 3

Mark Cuban’s Position in Twitter Caused a 4% Rally in the Stock

Mark Cuban in an interview with CNBC

On May 2, 2017, in an interview with CNBC’s Squawk Alley, billionaire investor Mark Cuban shared his views on the following:

  • his recent investment in Twitter (TWTR)
  • his views on various stock picks
  • his views on President Trump’s agenda and economic growth (QQQ) (SPY)

Mark Cuban’s Position in Twitter Caused a 4% Rally in the Stock

Interested in COMP-INDEX? Don't miss the next report.

Receive e-mail alerts for new research on COMP-INDEX

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Cuban, AXS TV chair and the owner of the Dallas Mavericks, recently said that he’d taken a sizeable position in Twitter. Cuban believes that artificial intelligence will play a big role in the technology sector (XLK). He believes that artificial intelligence will increase the productivity of Twitter’s existing employees. Unfortunately, it will also reduce the company’s employment because the system will be able to manage different types of work.

Cuban said that he started investing in Twitter as the company gained direction in terms of artificial intelligence and that such technology should increase the company’s productivity and profitability in the long term. Cuban also said that he’d made his top investments in Amazon (AMZN) and Netflix (NFLX).

Twitter stock rose nearly 4% on May 2, 2017. It made a high of $18.53 on the day, a rise of nearly 5.7% compared to the previous day’s closing price. The strong movement in the stock after Cuban’s position indicates that the company’s future could be bright. Cuban said, “I started buying Twitter recently because I think they finally got their act together with artificial intelligence.”

Twitter’s performance

TWTR has returned nearly 13% on a YTD (year-to-date) basis. Its 52-week high is $25.25, and its 52-week low is $13.73. It’s currently trading at a negative price-to-earnings multiple. If we analyze its last three years’ worth of performances, we can see that it’s shown negative earnings growth. We could see better earnings growth for it in the near future.

In the next part of this series, we’ll analyze Mark Cuban’s views on various stock picks.

X

Please select a profession that best describes you: