3 Big Reasons Why You Should Exit Twitter Inc (TWTR) Stock Today

Twitter stocks

Shares of San Francisco, California-based Twitter Inc (NYSE:TWTR) have had a tough time this year, falling by close to 12%, even as a host of tech names have enjoyed a great run. While the consistent decline in the stock price in recent times may seem like an opportunity to enter the stock, investors could be better off exiting TWTR stock on any rebound. Unless you have a huge risk appetite and are betting on an acquisition, buying now or continuing to hold stock may not make a lot of sense. Here are 3 reasons why you might want to sell TWTR shares completely.

Amazon (AMZN) Just Dented The Live Streaming Dream.

In recent times, it had become evident that Twitter had very little, apart from its live streaming ambitions, upon which to pin its hopes. To its credit, Twitter also started off pretty well, signing deals to live stream a large number of events. Twitter even managed to draw larger viewership than some way bigger platforms like Google's YouTube and Facebook. One of the big draws to Twitter's live stream was the platform's NFL coverage. Interestingly, Twitter wasn't even the highest bidder for rights to the Thursday night NFL games which it went on to stream.

It is believed that Twitter, which reportedly paid $10 million to acquire streaming rights, was picked over arch rival Facebook, among others, despite the fact that it didn't have the strongest bid. A truly encouraging pat on the back for Twitter, which gave investors more confidence in the platform's live streaming ambitions. However, surprisingly, the micro-blogging site lost out to Amazon (NASDAQ:AMZN) in the race to acquire this year's rights. Reports suggest that Amazon paid as much as $50 million for the privilege - 5 times as much as Twitter did last year. And with that, the Washington-based e-commerce giant has heavily dented Twitter's live streaming dreams.

There's A Surge In The Number Of 'Twitter Killers'.

Amazon's games-focused streaming site Twitch recently launched a front-page styled much like Twitter, with streams of reverse chronologically arranged tweets. Casey Newton of The Verge noted her observation of the development saying, "This is what disruption looks like". And while some observers put their weight vehemently behind the microblogging site, denying the possibility of anything even coming close to, let alone replacing Twitter, others weren't as convinced. As you'd expect there were others who were visibly excited, using captions like "Twitch Isn't the New Twitter. It's Even Bigger Than That."

We've all been talking about how Facebook (NASDAQ:FB) has been going after Snap Inc (NYSE:SNAP), replicating its innovative features and in effect stalling user growth on the platform. There's not much user growth to speak of on Twitter, and arguably, there isn't too much innovation either in terms of the product. So, when big guys like Amazon go after the niche audience that does love a platform like Twitter, it can be quite unnerving. What's more, it's not the big guys alone. There are small players like Mastodon, which is aimed at being an "actually viable alternative to Twitter". My colleague covered this in a recent post covering Twitter. And apparently, it's already quite popular. To be honest, we don't think Twitter will die anytime soon. However, it's hard to see how Twitter will be anything more than it is today - a compelling hobby for under 5% of the world's population.

'Evan' The Co-founder's Selling TWTR Stock.

Well, most of you know by now that Twitter co-founder and ex-CEO Evan Williams recently announced that he intends to sell a third of his shares in the company. Evan Williams has been on Twitter's board, keeping a close eye on the business. It's scary when top executives quit, and Twitter has bid adieu to so many of them that you might have lost count. But it's even scarier when co-founders who are on the board want to sell a third of their shares. Twitter didn't have too much going for it, with falling growth rates, and stubborn losses. And as it appears, things might just have gotten worse for the micro-blogging platform. Unless you're betting on an acquisition, and you have the stomach for high risk bets, you might want to consider a complete exit from TWTR stock.

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SOURCE: http://amigobulls.com/articles/2017-04-07-twtr-stock-3-big-reasons-why-you-should-exit-twitter-inc-twtr-stock-today