One of President Trump’s favorite tools of the presidential trade is the technology platform that gives him direct, unfiltered access to the world. We are speaking here, of course, about Twitter, Inc. (TWTR), asserts Mark Skousen and Jim Woods, editors of Fast Money Alert.
We all know the president loves to send out those late-night and early-morning tweets, and he’s often able to set the news narrative for the day with less than 280 characters.
And while the wisdom of some of the president’s tweets certainly can be questioned, what cannot be questioned is the efficacy of the Twitter platform for getting one’s quick-hit messages out to the world.
The success of the Twitter platform is something that many have been wanting to invest in for years. However, up until relatively recently, TWTR shares have failed to live up to investor expectations.
Well, that’s most certainly not been the case of late, as the fast money has really embraced the micro-blogging platform, and in a big way. For the past three months, TWTR shares are up over 31%. Moreover, during the past 12 months, the stock is up more than 175%. That relative price performance puts TWTR in the top 2% of all publicly traded companies in terms of relative price performance.
The best part of TWTR shares is that the price surge isn’t just based on hope. It is based on earnings power. For the past three years, TWTR’s annual earnings per share (EPS) growth rate is a very strong 16%.
Moreover, its recent quarterly EPS growth rate, as well as its annual earnings growth for the past several years, also puts the stock in the top 2% of all publicly traded companies on this key fundamental metric.
Good things keep rolling in for TWTR, as the shares recently received an upgrade, and/or a price target increase, from UBS, MKM Partners and JPMorgan Chase. We expect the gains in TWTR to continue, especially leading up to the company’s next earnings report, due out on July 26.
So, let’s buy Twitter at market, with a protective stop at $36.75. For those willing to take a bigger bet, consider buying the TWTR December $48 calls, which last traded for $5.50 and expire on Dec. 21.
