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Twitter Stock Crashing

Thursday, February 6th, 2014
Posted in Advice by Joel Gross

Twitter’s stock is headed south rapidly.  With an insane price to sales ratio of 55 (compare to Google’s at 6 or the average of 1-2), Twitter has been massively overvalued. Even Facebook, which is also overvalued, has a price to sales ratio of only 20.  Twitter still has a loooong ways to come down. I think a fair value for a share price is somewhere between $10-20… not the $52 it currently rests at.