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Power Play: Buy Twitter, sell Tesla

Workers assemble cars on the line at Tesla's factory in Fremont, California.
David Butow | Corbis | Getty Images

Twitter and Tesla are underperforming the market, with Twitter down 35 percent year-to-date and Tesla off nearly 10 percent.

Steven Dudash, President of IHT Wealth Management, tells CNBC's "Power Lunch" on Tuesday this is the time to start buying Twitter, but he is still avoiding Tesla.

"So now that Microsoft bought LinkedIn, which I personally think it's a very good move, who's next? Who is the next social media darling that is going to get gobbled up by a bigger company sitting on cash? What company's stock is relatively cheap and could use a cash infusion? I believe that Twitter is prime takeover material, " Dudash said.

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While Dudash likes Twitter, he is telling clients to stay away from Tesla.

"Do not buy Tesla, love the car, love the owner, hate the stock. They cannot produce at the price points they claim or need to hit. I honesty hope I'm wrong but it's TiVo all over again, " Dudash said.

Twitter is up 3 percent during trading, while Tesla is down fractionally.