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Takeaway: It's been tough sledding for TWTR bulls.

Twitter shares got totally shellacked yesterday, dropping almost 18% after its IPO lock-up period ended. Shares finished trading around $32. Today hasn't fared much better for Twitter bulls with shares off around 4%. TWTR is down a remarkable 27% over the last five trading days.

We wanted to know where you thought shares were headed next. So we asked your opinion in today’s poll: What’s the next stop for Twitter? $22/share or $42/share?


Poll of the Day Recap: 55% Say $TWTR's Next Stop is $22/Share - Twitter cartoon 5.7.2014


At the time of this post, 55% said Twitter will soon be trading at $22; 45% said $42.
 

Of the majority who said trading would drop to $22/share, voters had these diverse explanations:

  • “In this type of market environment, where mo mo gets killed, $22 is more likely than $42. Especially, after reading some comments from people that voted $42, they seem still are long this thing.”
  • “It'll follow the same pattern as Facebook; go down (as it has), but eventually climb back up.  Though the product is mature, the business still isn't, but Dick Costolo will figure it out.”
  • “It's going to $15.”
  • “Both prices look arbitrary, but the stock price looks likely to break down, making new lows.  Longer term, I would expect it to stabilize at higher prices. This is a real business model and probably still has growth ahead.”

Here’s what some voters who think Twitter shares are headed to $42/share next (if not more) had to say:

  • “I am long of Twitter in hashtag terms.I close my eyes and cross one finger over the other and wish upon this falling star. It’s a process.”
  • “The share price will settle around $45. That seems to be a fair price.”
  • “To call this a ‘bubble’ is non-sense.  Most investors lived through the bubble and this is not the same as 1999.  To be temporarily over-valued on hype does not necessarily equal a bubble.  Twitter will create a real and sustainable business out of this; one that'll exceed $42 at some point in the next 18-24 months.
  • The phoenix will rise again.  It needed a serious correction (which it got), and it'll probably dip a little further, but this will go back up to $42 in the next year or two.  Getting this stock in the mid-20's would be perfect, even if it dipped into the low 20's for a period thereafter.  They have a great management team, and lots more potential for the product (and revenue).

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