Twitter shares continued their descent on Tuesday falling to a fresh 52-week low as the stock sold off nearly 3 percent in midday trading. And now, almost a week after Dick Costolo announced he would step down as the company's CEO, investors are asking one burning question: Is the stock a falling knife or basement bargain?
"I think the stock goes below $30," Cowen and Co.'s David Seaburg said Monday on CNBC's "Trading Nation." "Everybody has been saying that there was a line in the sand at $35, and obviously we breached that [Monday]."
According to Seaburg, despite the selloff, the stock is "expensive" at current levels and investors should wait until shares hit the mid-$20 range to step in and buy them. "There's just no reason to pay this price for Twitter," he said. "When you think about a growth investor and why they'd own a company like this, it's because they want user base to grow, and they want users to grow. It's just not happening."