If you can't then you shouldn't invest
Twitter seems to be finding its even keel in terms of price, settling in at the mid-50's. Facebook is near its 52-week high right now at $70.84 with a PE of 107. Twitter has no PE because it has not made a profit.
Personally, I suggest you look elsewhere for stocks to invest in. At a PE of 107, Facebook would need to grow profits 5X to even catch up to being a decent value at that price. Can they do it? Maybe. They are making lots of good investments buying companies, and they have moved pretty successfully into mobile. However, I think their rapid growth is over in their core business so I would not buy it for that reason.
Twitter is even more suspect than facebook. I don't see how they will ever turn all the traffic into significant cash flow. Tweets in my opinion are like farts in the wind, they disappear off your screen in a few seconds if you follow a lot of people. I just don't see the business angle.
If you are looking for some good cutting edge stocks, that are overpriced, try Netflix or Tesla. Those companies have real growth potential, but like the other two a lot of the future growth is priced in already. More subtle I like Fiesta Restaurant Group and Gilead Sciences, still a little pricey but not as high profile.
It looks to high but who knows, this is unchartered territory. I read that the winners will have a complete user offering (ecosystem) encompassing complete 'digital life'. That is hardware, user interface and applications. Twitter, Facebook, Amazon have great user numbers but a long way adrift from the leaders. Basically they have one small part of the whole ecosystem and their futures could be seriously challenged.
Look at Nokia who thought mobile phones were for making telephone calls!
I'm looking to buy twitter stock I just want to know $55 is that too high for a purchase or do u think it will it go down in your opinion ??? I plan to hold long term couple years. So is it worth purchasing as a stock? In your opinion??? Thanks.
